Idex 2Q disappoints on Europe, ChinaThe Associated Press
LAKE FOREST, Ill. -- Idex Corp. reported an 8 percent increase in its second-quarter profit Monday but failed to meet market expectations due to weakness overseas. The maker of pumps, flow meters and Jaws of Life rescue equipment issued a disappointing forecast for the third quarter and lowered its full-year estimates, sending shares tumbling in after-hours trading.
Idex, based in Lake Forest, Ill., said demand remained strong in North America and emerging markets during the most recent quarter. But economic uncertainty in Europe and China, along with the stronger dollar, took a toll on its business. It also was weighed down by acquisition costs during the period.
The company earned $54.4 million, or 65 cents per share, for the quarter that ended June 30. It earned 67 cents per share after adjusting for restructuring charges. That's compared with $50.2 million, or 60 cents per share, in the same quarter of the prior year.
Idex's total revenue increased to $494.1 million from $453.8 million with gains in all its divisions, which were offset by exchange rates.
The quarter fell short of market expectations. Analysts polled by FactSet had expected the company to earn 71 cents per share for the quarter on revenue of $505.7 million.
Idex said it expects to earn between 62 and 64 cents per share for the third quarter; below the 71 cents expected by analysts.
It also lowered its full-year outlook. The company now expects to earn $2.65 to $2.70 per share for the year, down from its earlier forecast of $2.80 to $2.85 per share. The guidance excludes the impact of its recently announced acquisition of materials processing company Matcon Ltd. Analysts were expecting Idex to earn $2.81 per share.
Shares fell 80 cents to close regular trading at $36.79. They fell nearly 4 percent to $35.50 in after-hours trading on the news.