Oppenheimer Maintains Perform On Idex Following 3Q14 Results

In a research note released yesterday, Oppenheimer analyst Jim Giannakouros maintained a Perform rating on Idex Corp. (NYSE:IEX), following the company’s release of its third-quarter results. The company had an EPS of $0.88 which was higher than Giannakouros’s EPS estimate of $0.85. No price target was provided.

Giannakouros wrote, “Sales were higher than we modeled (+9% y/y vs. our +7%), with each segment above our estimate. This drove the variance vs. our expectations as we had modeled 32% incremental margins (achieved), where OM increased 100bps y/y to 20.8% during the quarter. Each segment experienced benefits from volume leverage and productivity initiatives, which may continue given IEX’s planned incremental cost-out actions in 4Q14 (we look for more details on the call). Accordingly, IEX remains well positioned to maintain 30%+ incrementals into next year if MSD organic growth can be maintained.”

The analyst continued, “IEX continues to execute, which is key as flat organic order growth (excluding a large dispensing order last year) does not suggest top-line acceleration is in the making near term. Productivity initiatives and continued share repurchases ($64M in 3Q, $150M YTD) continue to support EPS and valuation. At 20x the high end of EPS guidance, shares appear to balance the above factors, attractive FCF characteristics, and balance sheet optionality with global growth uncertainties.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jim Giannakouros has a total average return of 1.6% and a 33.3% success rate. Giannakouros is ranked #1766 out of 3354 analysts.

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