Fluid & Metering Technologies: 47% Health & Science Technologies: 28%
Fire & Safety/Diverisified Products: 18%

EPS Up 28%

IDEX reported third quarter earnings per share of 50 cents, beating the Zacks Consensus Estimate by 3 cents. It was a 28% increase over the same quarter in 2009.

Total sales were up 16% year-over-year, driven by a 13% increase in orders. The Fluid & Metering division saw organic top-line growth of 13%, while the Health & Science segment soared 24%.

Meanwhile, the operating margin expanded from 15.2% in the third quarter of 2009 to 17.6%, leading to a 34.2% increase in operating income.

Raising Guidance

Management revised its guidance for 2010 EPS following the strong third quarter. The company now expects to earn between $1.95 and $1.97 per share, up from previous guidance of $1.85 to $1.90.

The Zacks Consensus Estimate for 2010 is within guidance at $1.96, representing a 28% increase over 2009 EPS. The 2011 is currently $2.23, equating to 14% growth.

Dividend

Since 2000, IEX has raised its dividend at a compound annual growth rate of 8.6%.

Its payout ratio is a very manageable 32%. It currently yields 1.5%.

Valuation

Shares are trading at 20.3x forward estimates, a slight premium to the industry average of 19.3x. Its price to book ratio of 2.4 is also a little higher than its peers at 2.3.

IDEX Corporation is headquartered in Northbrook, Illinois and has a market cap of $3.3 billion.

Todd Bunton is the Growth & Income Stock Strategist for Zacks.com.