IDEX Corporation IEX is scheduled to release fourth-quarter 2024 results on Feb. 4, after market close.

The Zacks Consensus Estimate for fourth-quarter earnings has remained steady in the past 60 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average surprise being 2.9%.

The consensus estimate for revenues is pegged at $865 million, indicating an increase of 9.6% from the prior-year quarter’s figure. The consensus estimate for adjusted earnings is pinned at $2.03 per share, indicating a 10.9% increase from the year-ago quarter’s number.

Let's see how things have shaped up for IDEX this earnings season.

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Factors to Note Ahead of IDEX’s Results

The Fluid & Metering Technologies (FMT) segment is expected to have benefited from strong momentum in the intelligent water business, driven by continued strength in the North American municipal market and rising governmental funding to support ongoing investments. Also, growth in orders across the majority of the businesses is expected to have aided the segment’s performance in the fourth quarter. We expect the segment’s revenues to be $334.1 million, indicating an increase of 11.7% year over year.

Focus on reducing excess inventory and improving overall productivity is expected to have supported the Fire & Safety/Diversified Products (FSDP) segment. Strong demand for products in the fire and safety businesses is also likely to have driven the segment’s performance. We expect the segment’s revenues to be $198.7 million up 11% year over year.

The acquisition of Mott Corporation and its subsidiaries (Mott), in September 2024, expanded the company’s expertise in applied materials science technology capabilities across high-value end markets. In December 2023, IEX acquired advanced material science solutions provider STC Material Solutions, which expanded its expertise in material sciences. These acquisitions are likely to have augmented the company’s performance.

We expect fourth-quarter revenues to increase 10.1% to $868.7 million from the year-ago period. Adjusted earnings are expected to increase 10.7% year over year to $2.03 per share.

However, softness in the semiconductor markets is likely to have weighed on IDEX’s Health & Science Technologies segment’s fourth-quarter performance.

Unfavorable price/cost impacts and higher discretionary expenses are likely to have weighed on IEX’s performance. Also, increasing selling, general and administrative expenses are expected to have dented margins.

Given the company’s substantial international presence, foreign-currency headwinds are likely to have weighed on its top line.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for IDEX this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.

Earnings ESP: IEX has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $2.03. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: IEX presently carries a Zacks Rank of 3.

Stocks to Consider

Here are some companies, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.

Greif, Inc. GEF has an Earnings ESP of +1.35% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is slated to release first-quarter fiscal 2025 (ended December 2024) results on Feb. 26. GEF’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark in one, the average surprise being 133.5%.

Flowserve Corporation FLS has an Earnings ESP of +2.60% and a Zacks Rank of 3 at present. The company is scheduled to release fourth-quarter 2024 results on Feb. 18.

Flowserve’s earnings surpassed the Zacks Consensus Estimate in three of the preceding four quarters and missed the mark in one, the average surprise being 10.8%.

AptarGroup, Inc. ATR has an Earnings ESP of +0.16% and a Zacks Rank of 3 at present. The company is slated to release fourth-quarter 2024 results on Feb. 6.

AptarGroup’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.1%.

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