There's been a notable change in appetite for IDEX Corporation (NYSE:IEX) shares in the week since its full-year report, with the stock down 11% to US$199. It was a credible result overall, with revenues of US$3.3b and statutory earnings per share of US$6.64 both in line with analyst estimates, showing that IDEX is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for IDEX

Taking into account the latest results, the current consensus from IDEX's ten analysts is for revenues of US$3.44b in 2025. This would reflect a modest 5.2% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 2.9% to US$6.86. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$3.50b and earnings per share (EPS) of US$7.21 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at US$232, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on IDEX, with the most bullish analyst valuing it at US$264 and the most bearish at US$200 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that IDEX's revenue growth is expected to slow, with the forecast 5.2% annualised growth rate until the end of 2025 being well below the historical 7.7% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.2% annually. Factoring in the forecast slowdown in growth, it looks like IDEX is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for IDEX. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for IDEX going out to 2027, and you can see them free on our platform here..

You can also view our analysis of IDEX's balance sheet, and whether we think IDEX is carrying too much debt, for free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.