IMI (LON:IMI) Releases Quarterly Earnings Results

IMI (LON:IMI) released its quarterly earnings data on Friday. The company reported GBX 63.40 EPS for the quarter, Digital Look Earnings reports. IMI had a net margin of 14.09% and a return on equity of 32.41%.

Here are the key takeaways from IMI’s conference call:

• Strong first-half performance: Organic revenue rose 5%, organic adjusted operating profit increased 8%, margins expanded 50 basis points to 18.7%, and adjusted EPS grew 13% to £0.634.
• Demand remained robust in key growth markets. Process Automation orders increased 12%, including a £48 million nuclear contract spanning more than a decade; LNG orders rose 56%, while data-center orders climbed to £80 million from £6 million a year earlier.
• Cash generation and shareholder returns improved materially. Free cash flow increased to £171 million from £30 million, cash conversion reached 96%, the interim dividend rose 10%, and £250 million of the planned £500 million buyback had been completed by June 30.
• Full-year guidance was reconfirmed rather than raised. IMI still expects mid-single-digit organic revenue growth and adjusted EPS of £1.36–£1.42, while cybersecurity investment, difficult comparisons in the second half, Middle East shipment risks, tariffs, and weak German industrial activity remain potential constraints.

IMI Stock Performance

LON IMI opened at GBX 2,936 on Friday. The company has a quick ratio of 0.80, a current ratio of 1.30 and a debt-to-equity ratio of 80.30. The company has a market capitalization of £6.95 billion, a P/E ratio of 23.72, a P/E/G ratio of 1.12 and a beta of 1.05. IMI has a 12-month low of GBX 1,802.19 and a 12-month high of GBX 3,848. The firm has a 50-day moving average price of GBX 2,893.92 and a two-hundred day moving average price of GBX 2,802.62.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on IMI. Jefferies Financial Group restated a “buy” rating and set a GBX 3,380 target price on shares of IMI in a research note on Friday. JPMorgan Chase & Co. upped their price target on shares of IMI from GBX 3,050 to GBX 3,300 and gave the company an “overweight” rating in a research note on Wednesday, July 8th. Finally, Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a GBX 3,250 price target on shares of IMI in a report on Wednesday, May 13th. Five analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of GBX 3,015.

About IMI

IMI plc is a specialist engineering company operating in fluid and motion control markets. We combine our deep engineering knowledge with strong applications expertise to develop solutions for the most acute industry problems. We help our customers become safer, more sustainable and more productive. IMI employs around 10,000 people, has manufacturing facilities in 19 countries and operates a global service network. The Company is listed on the London Stock Exchange and is a constituent of the FTSE4Good Index.