IMI (LON:IMI) Posts Quarterly Earnings Results

IMI (LON:IMI) released its quarterly earnings data on Friday. The company reported GBX 63.40 earnings per share (EPS) for the quarter, Digital Look Earnings reports. IMI had a return on equity of 24.91% and a net margin of 14.33%.

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

IMI stock traded down GBX 10 on Friday, reaching GBX 2,936. The company’s stock had a trading volume of 1,046,750 shares, compared to its average volume of 9,816,375. IMI has a 52 week low of GBX 1,802.19 and a 52 week high of GBX 3,848. The company has a market capitalization of £6.95 billion, a P/E ratio of 23.72, a price-to-earnings-growth ratio of 1.12 and a beta of 1.05. The firm has a fifty day moving average of GBX 2,890.60 and a two-hundred day moving average of GBX 2,801.68. The company has a debt-to-equity ratio of 58.04, a current ratio of 1.50 and a quick ratio of 0.80.

Wall Street Analyst Weigh In

Several brokerages have weighed in on IMI. Jefferies Financial Group reaffirmed a “buy” rating and issued a GBX 3,380 target price on shares of IMI in a research report on Friday. JPMorgan Chase & Co. boosted their price target on shares of IMI from GBX 3,050 to GBX 3,300 and gave the company an “overweight” rating in a report on Wednesday, July 8th. Finally, Deutsche Bank Aktiengesellschaft restated a “buy” rating and set a GBX 3,250 price target on shares of IMI in a research report on Wednesday, May 13th. Six equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of GBX 2,934.29.

IMI Company Profile

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.