Idex Earnings: Record Sales Overshadowed by Health & Science Technologies Inventory Correction

Narrow-moat-rated Idex posted solid first-quarter results, featuring a 7% year-over-year increase in adjusted EPS, from $1.96 to $2.09. However, organic orders fell by 10% due to headwinds in health and sciences technologies, and excess customer inventory levels will likely continue to pressure the segment's sales in the second quarter. We've lowered our fair value estimate for Idex to $221 from $225, which reflects our more muted near-term revenue growth projections, partially offset by time value of money.