IMI (LON:IMI) Announces Quarterly Earnings Results

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

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 Price Performance

IMI stock opened at GBX 2,936 on Friday. The company has a debt-to-equity ratio of 58.04, a current ratio of 1.50 and a quick ratio of 0.80. The company’s 50-day moving average is GBX 2,893.92 and its 200-day moving average is GBX 2,802.62. The stock has a market capitalization of £6.95 billion, a PE ratio of 23.72, a price-to-earnings-growth ratio of 1.12 and a beta of 1.05. IMI has a 1 year low of GBX 1,802.19 and a 1 year high of GBX 3,848.

Wall Street Analyst Weigh In

IMI has been the topic of a number of recent analyst reports. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a GBX 3,250 price objective on shares of IMI in a research note on Wednesday, May 13th. JPMorgan Chase & Co. lifted their target price on IMI from GBX 3,050 to GBX 3,300 and gave the stock an “overweight” rating in a report on Wednesday, July 8th. Finally, Jefferies Financial Group reissued a “buy” rating and issued a GBX 3,380 price target on shares of IMI in a research note on Friday. Five research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, IMI has a consensus rating of “Moderate Buy” and an average target price of GBX 3,015.

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.