Industrial goods manufacturer
) reported fourth quarter 2013 net income of $67.6 million versus
loss of $119.0 million in the year-ago quarter. Earnings per
share in the reported quarter stood at 82 cents versus a loss of
$1.45 in the year-ago quarter. The reported earnings were well
ahead of the Zacks Consensus Estimate of 80 cents. The increase
in earnings was driven by increase in sales and orders.
For 2013, net income stood at $255.2 million versus $37.6 million
in the prior year. Earnings per share stood at $3.09 versus 45
cents in 2012. The reported earnings were ahead of the Zacks
Consensus Estimate of $2.98.
Net sales in the reported quarter improved to $520.6 million
compared with $490.8 million. However, the quarterly revenues
were in line with the Zacks Consensus Estimate. Orders stood at
$519 million, up 8% from the year-ago period. Organic growth
contributed 5% and 7% to quarterly sales and orders,
For 2013, net sales improved to $2,024.1 million from $1,954.3
million in 2012. However, revenues for full year 2013 missed the
Zacks Consensus Estimate of $2,051 million. Orders stood at $2.1
billion, up 7% from the year-ago period.
Fluid and Metering Technologies
(FMT) reported sales of $222 million in the quarter, up 5% year
over year. The H
ealth and Science Technologies
(HST) segment revenues came in at $182 million in the reported
quarter, improving 4% year over year, while the
Fire and Safety/Diversified Products
segment recorded sales of $118 million, up 9% year over year.
Operating margin in the reported quarter improved 150 basis
points to 20.0%, driven by an increase in productivity and volume
leverage. Adjusted Earnings before Interest, Taxes Depreciation
and Amortization (EBITDA) stood at $122.8 million in the reported
quarter, up 10% from the year-ago period.
The FMT segment reported operating margin of 24.9% in the
reported quarter, up 390 basis points year over year. The
segment's margin benefited from higher volume and productivity
The HST segment's operating margin came in at 18.2%, down 20
basis points from the year-ago quarter due to charges associated
with cost-out actions taken during the quarter, partially offset
by higher volume and productivity initiatives.
The Fire and Safety segment recorded an operating margin of
24.3%, up 10 basis points from the year-ago quarter. The
year-over-year increase was primarily attributable to volumes and
Balance Sheet and Cash Flow
As of Dec 31, 2013, IDEX Corporation had cash and cash
equivalents of $439.6 million, while long-term debt stood at
Cash flow from operating activities aggregated $401.5 million for
full year 2013 compared with $326.1 million in 2012. Free cash
flow stood at $378.6 million as of Dec 31, 2013 versus $294.8
million in the year-ago period - a remarkable 28% year-over-year
IDEX Corporation repurchased 2.9 million shares for $166 million
IDEX Corporation remains bullish about its top- and bottom-line
growth. For first quarter 2014, earnings are expected in the
range of 83 to 85 cents per share, up 12.0% -15.0% from the prior
year. For full year 2014, the company expects earnings in the
range of $3.33 to $3.43, up 8.0%-11.0% from the prior year.
Organic revenue growth is expected in the range of 3%-5%.
IDEX Corporation continues to fund organic growth while
pursuing strategic acquisitions, increasing dividends and
remaining active on share repurchases. We remain encouraged with
the positive outlook of the company.
IDEX Corporation currently has a Zacks Rank #3 (Hold). Other
stocks that look promising in the industry and are worth
Altra Industrial Motion Corp.
pplied Industrial Technologies, Inc.
Barnes Group Inc.
), each carrying a Zacks Rank #2 (Buy).
ALTRA HOLDINGS (AIMC): Free Stock Analysis
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IDEX CORP (IEX): Free Stock Analysis Report
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