IDEX Corp.
(
IEX
) reported diluted earnings per share of 66 cents in the first
quarter of 2012 compared with 57 cents in the first quarter of 2011
and 65 cents in the earlier quarter.
Earnings not only beat the Zacks Consensus Estimate of 64 cents
per share but also managed to surpass the company's previously
provided guidance range of 62 cents per share to 64 cents per share
for the quarter.
Revenues
Net revenues came to $489.4 million, up 14.6% year over year and
1.8% sequentially. This surpassed the Zacks Consensus Estimate of
$481 million comprehensively. Orders were up 20% annually to reach
$531 million in the first quarter of 2012. Management was quite
appeased by the improved orders and ameliorated revenues across all
three segments.
The Fluid and Metering Technologies (FMT) segment reported sales
of $212.7 million, up 6.4% year over year but down 0.6%
sequentially. The Health and Science Technologies (
HST
) segment revenues came in at $173.8 million, rising 34.5% annually
and 3.5% sequentially. The Fire and Safety segment recorded sales
of $104.1 million, up 5.3% annually and 37% sequentially.
Margins
Operating margin (excludingre-structuring charges) in the
quarter came to 18.3% versus 18.2% in the previous year quarter and
17.8% in the last quarter. This was achieved on the backs of
increased sales and efficiency in productivity.
The FMT segment reported improved sales coupled with production
efficiencies during the quarter resulting in an operating margin of
22.2%, rising from 21% in the last year quarter and 19.7%
sequentially.
The HST segment operating margin came in at 18.3%, falling from
22.8% in the previous year quarter and 19.5% in the fourth quarter
of 2011, mainly due to the adverse dilutive effects of
acquisitions.
The Fire and Safety products segment recorded an operating
margin of 23.3% versus 21.4% in the year-ago quarter and 28.1% in
the last quarter. The annual rise was attributable primarily to the
vast re-structuring activities implemented during the quarter to
increase operational efficiency.
Balance Sheet and Cash Flow
As of March 31, 2012, the company had cash and cash equivalents
of $245.5 million, increasing from $230.3 million at the end of the
previous quarter. Also, net receivables came in $270.8 million,
rising from $252.9 million at the end of the previous quarter.
Long-term debt reduced to $769.9 million from $806.4 million at the
end of the previous quarter.
Cash provided by operating activities amounted to $58.7 million
at the end of the first quarter of 2012 compared to $29.1 million
in the previous year quarter. Capital expenditures incurred were
$8.5 million versus $11.4 million at the end the first quarter of
2011.
Share Repurchase
During the first quarter of 2012, IDEX repurchased 239,000
shares of its own stock for $10.2 million.
Outlook
IDEX looks quite favorably ahead for its upcoming quarter
performance with EPS projections of 70 cents per share - 72 cents
per share for the second quarter of 2012.
Management increased EPS expectations from a previous range of
$2.74 - $2.82 to a range of $2.80 and $2.85 for full year 2012.
Also, organic revenue is projected to be in roughly mid-single
digits.
IDEX CORP (
IEX
): Free Stock Analysis Report
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