What Happened?
Shares of manufacturing company IDEX (NYSE: IEX) fell 8.1% in the afternoon session after after the company slashed its full-year profit forecast, overshadowing second-quarter results that beat expectations. Although the company's second-quarter adjusted earnings and revenue surpassed Wall Street expectations, investors focused on the bleaker outlook. The company attributed the revised forecast to a challenging operating environment and slowing demand for its industrial equipment as customers grew more cautious with larger orders amid economic uncertainty. IDEX slashed its full-year adjusted earnings per share guidance to a range of $7.85 to $7.95, which was notably below the analyst consensus of $8.20. The third-quarter forecast also fell short of expectations, signaling a tougher second half of the year for the company.
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What Is The Market Telling Us
IDEX’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
IDEX is down 17.7% since the beginning of the year, and at $169.53 per share, it is trading 28.2% below its 52-week high of $236.06 from November 2024. Investors who bought $1,000 worth of IDEX’s shares 5 years ago would now be looking at an investment worth $1,030.
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