IDEX Corporation (NYSE:IEX) Q3 2018 Earnings Conference Call Transcript

Oct 24, 2018 • 10:30 am ET

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IDEX Corporation (NYSE:IEX) Q3 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Greetings, and welcome to the Third Quarter 2018 IDEX Corporation Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Mike Yates, CAO. You may begin.

Executive
Mike Yates

Thank you, Sheri. Good morning, everyone. This is Mike Yates, VP and CAO for IDEX Corporation. Let me start by saying thank you for joining our discussion of the IDEX third quarter financial highlights. Last night we issued a press release outlining our company's financial and operating performance for the three months ending September 30, 2018 and later today we will file our 10-Q. The press release along with the presentation slides to be used during today's webcast can be accessed on our company's website at www.idexcorp.com.

Joining me today is Andy Silvernail, our Chairman and CEO; and Bill Grogan, our CFO. The format for our call today is as follows. We will begin with Andy providing an overview and an update on market conditions, geographies and our capital deployment strategies. He will then discuss our third quarter financial results and walk you through the operating performance within each of our segments. And finally we will wrap up with an outlook for the fourth quarter and the full-year 2018. Following the prepared remarks, we will open the call for your questions.

If you should need to exit the call for any reason, you may access a complete replay beginning approximately two hours after the call concludes by dialing the toll-free number 877-660-6853 and entering conference ID number 13675421 or you may simply log on to our company's home page for the webcast replay.

(Forward-Looking Cautionary Statements)

With that, I'll turn the call over to our Chairman and CEO, Andy Silvernail.

Executive
Andy Silvernail

Thank you, Mike, and good morning everybody. I appreciate you joining us here to discuss our 2018 third quarter results. Let me start with a brief summary of some key results and also our guidance and I think as we go through the call today and questions later on, these are the points that I think really matter.

Overall, the organic landscape of our business remains very positive. Our targeted growth investments continue to pay off. The economics of our end markets are fundamentally strong and we continue to see growth across all geographies. Our balance sheet is strong and we have ample dry powder to play across our framework to drive long-term value for shareholders. Tariffs and inflation are ramping, but our teams have been able to offset the headwinds through pricing actions and productivity to remain ahead of the inbound pressure.

Finally, our effective tax rate for the third and the fourth quarters have been more of a variable than normal. In the third quarter we had favorability in our rate due to excess tax benefit related to stock compensation that drove $0.04 EPS versus our guide. In the fourth