IDEX Corporation IEX is scheduled to release third-quarter 2024 results on Oct. 29, after market close.

The Zacks Consensus Estimate for 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 5.9%.

The consensus estimate for revenues is pegged at $791 million, indicating a decline of 0.3% from the prior-year quarter’s figure. The consensus estimate for adjusted earnings is pinned at $1.89 per share, indicating a 10.9% decline from the year-ago reported numbers.

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

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Factors Influencing IDEX’s Q3 Results

Softness in the analytical instrumentation, life sciences and semiconductor markets is likely to have weighed on IDEX’s Health & Science Technologies segment’s third-quarter performance. We expect the segment’s revenues to be $308.5 million, indicating a decline of 1.5% year over year.

The Fluid & Metering Technologies segment is expected to have been hurt by weakness in the industrial markets owing to non-repeat projects. Also, the agricultural businesses continue to be cyclically down, which is likely to have impacted the segment’s performance. We expect the segment’s revenues to be $294.6 million, indicating a decline of 2.1% year over year.

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. For the third quarter, we expect the company’s gross margin to decrease 40 basis points from the year-ago figure.

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

We expect third-quarter revenues to decline 0.6% to $788.3 million from the year-ago period. Adjusted earnings are expected to decline 12.0% year over year to $1.87 per share.

However, focus on reducing excess inventory and improving overall productivity is expected to have supported the Fire & Safety/Diversified Products segment. We expect the segment’s revenues to be $186.5 million up 3.3% year over year.

The acquisition of advanced material science solutions provider STC Material Solutions, in December 2023, expanded the company’s expertise in material sciences and offered significant opportunities to collaborate with other IDEX-critical components businesses on comprehensive solution sets for customers. This acquisition is likely to have augmented the company’s performance.

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 -0.44% as the Most Accurate Estimate is pegged at $1.88, which is lower than the Zacks Consensus Estimate of $1.89. 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.

Ingersoll Rand Inc. IR has an Earnings ESP of +1.22% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is scheduled to release third-quarter results on Oct. 31. Ingersoll’s earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 11%.

Zebra Technologies ZBRA has an Earnings ESP of +2.01% and a Zacks Rank of 3 at present. The company is slated to release third-quarter results on Oct. 29.

Zebra Technologies’ earnings have surpassed the consensus estimate in each of the trailing four quarters, the average surprise being 11.9%.

Emerson Electric Co. EMR has an Earnings ESP of +0.09% and a Zacks Rank of 3 at present. The company is slated to release fiscal fourth-quarter (ended September 2024) results on Nov. 5.

Emerson’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark in one, the average surprise being 6.3%.

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Emerson Electric Co. (EMR) : Free Stock Analysis Report

Ingersoll Rand Inc. (IR) : Free Stock Analysis Report

IDEX Corporation (IEX) : Free Stock Analysis Report

Zebra Technologies Corporation (ZBRA) : Free Stock Analysis Report

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