) delivered adjusted earnings of 69 cents per share in the fourth
quarter of 2012, up 6% from the year-ago quarter and ahead of the
Zacks Consensus Estimate of 67 cents per share.
Full year 2012 adjusted earnings stood at $2.68 per share
versus $2.56 in 2011. The adjusted earnings for 2012 were ahead
of the Zacks Consensus Estimate of $2.66 per share.
Net revenue came in at $490.8 million versus $480.6 million in
the year-ago quarter. The quarterly revenues missed the Zacks
Consensus Estimate of $492 million. For full year 2012, net
revenue stood at $1,954.2 million versus $1,838.4 million in the
previous year. New orders in the reported quarter totaled $482
million, up 8% from the year-ago period.
The Fluid and Metering Technologies (FMT) segment reported
sales of $212 million, down 2.0% year over year. The Health and
Science Technologies (HST) segment revenues came in at $175.0
million, up nearly 6% annually. The Fire and Safety segment
recorded sales of $109.0 million, up 9.0% year over year.
Adjusted operating margin (excluding re-structuring charges)
in the quarter was 18.5%, up 70 basis points year over year.
The FMT segment reported operating margin of 21.0%, up 120
basis points year over year. The segment's margin was highly
influenced by the company's high productivity and cost-cutting
The HST segment's operating margin came in at 18.4%, down 100
basis points from the year-ago quarter. The decline was primarily
attributed to the adverse effects of acquisition activities.
The Fire and Safety products segment recorded an operating
margin of 24.2%, up 200 basis points from the year-ago quarter.
The annual rise was primarily led by the company's augmented
productivity and higher volume.
Balance Sheet and Cash Flow
As of Dec 31, 2012, the company had cash and cash equivalents
of $318.9 million, compared to $230.3 million in the year-ago
period. Long-term debt came down to $779.2 million from $806.4
million in the previous year.
Cash flow from operating activities amounted to $85.7 million
in the fourth quarter of 2012 compared to $41.6 million in the
year-ago quarter. IDEX Corporation repurchased 2.2
million shares for $90 million in 2012.
For the first quarter of 2013, earnings are expected in the
range of 70 to 72 cents per share, up 6% to 9%. For full year
2013, the company expects earnings in the range of $2.85 to
$2.95, up 6% to 10% from 2012.
With over $1 billion of available capital, IDEX Corporation
continues to fund organic growth while pursuing strategic
acquisitions, maintaining steady dividends and remaining active
on share repurchases. Going forward, the company expects low- to
mid-single digit organic growth in 2013 with a healthy
performance in the second half of the year.
However, the company operates in an intensely competitive
landscape that includes big players such as
Gorman- Rupp Co
Standex International Corp
), which might limit its profitability.
IDEX Corporation currently has a Zacks Rank #2 (Buy). One of
) also carries a Zacks Rank #2 (Buy).
GRACO INC (GGG): Free Stock Analysis Report
GORMAN RUPP CO (GRC): Free Stock Analysis
IDEX CORP (IEX): Free Stock Analysis Report
STANDEX INTL CO (SXI): Free Stock Analysis
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