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Fortive Corporation (FTV - Free Report) reported second-quarter 2024 adjusted earnings per share (EPS) of 93 cents, which topped the Zacks Consensus Estimate by 1.1%. The bottom line increased 9% year over year.
Revenues rose 2% year over year to $1.55 billion. However, it missed the Zacks Consensus Estimate by 0.6%. Core revenues were flat year over year.
The year-over-year improvement in the top line was driven by continued momentum in the Fortive Business System. Steady momentum in Intelligent Operating Solutions and Advanced Healthcare Solutions’ segments acted as a catalyst.
The company tweaked guidance for 2024 owing to foreign exchange headwinds and a revised outlook at Precision Technologies. Revenues are now anticipated to be between $6.25 billion and $6.3 billion compared with the previous guidance of $6.35 billion and $6.425 billion, indicating 3-4% growth from the year-ago levels. The Zacks Consensus Estimate is pegged at $6.41 billion.
Fortive Corporation Price, Consensus and EPS Surprise
Management now projects adjusted net EPS between $3.80 and $3.86 compared with the previous guidance of $3.77 and $3.86. The Zacks Consensus Estimate is pegged at $3.81
Core revenue growth is anticipated to be between 2% and 3%. Free cash flow is forecasted to be $1.365 billion.
For third-quarter 2024, adjusted net EPS is estimated to be in the range of 92-95 cents. Revenues are expected in the $1.535-$1.560 billion band. The Zacks Consensus Estimate for third-quarter EPS and revenues is pegged at 96 cents and $1.59 billion, respectively.
Free cash flow is forecasted to be $360 million. Core revenue growth is anticipated to be between 2% and 3.5%.
Following the results and subdued outlook, the stock was down 8.2% on Jul 24 and closed the session at $70.40. In the past year, shares of FTV have lost 8.2% of their value compared with the sub-industry’s growth of 4.8%.
Image Source: Zacks Investment Research
Top Line in Detail
Fortive operates under the following three organized segments.
Intelligent Operating Solutions: The segment generated revenues of $677 million (contributing 43.6% to total revenues), up 4% on a year-over-year basis.
Precision Technologies: Segmental revenues totaled $552 million (35.5%), down 1.5% year over year.
Advanced Healthcare Solutions: This segment registered revenues of $324 million (20.9%), up 3% year over year.
Operating Details
In the reported quarter, gross profit increased 2.5% to $928.3 million on a year-over-year basis.
Adjusted operating margin was 26.9%, extending 90 bps on a year-over-year basis.
Segment-wise, the adjusted operating margins of Intelligent Operating Solutions and Precision Technologies were 32.8% and 24.8%, contracting 20 bps and 10 bps, respectively, year over year.
Advanced Healthcare Solutions’ adjusted operating margin of 26.4% rose 260 bps.
Balance Sheet & Cash Flow
As of Jun 28, 2024, cash and cash equivalents were $644.1 million compared with $704.6 million as of Mar 29.
As of Jun 28, 2024, accounts receivables were $934.5 million compared with $962.6 million as of Mar 29.
FTV generated an operating cash flow of $308.9 million for the second quarter compared with 256.7 million in the previous quarter. Non-GAAP free cash flow was $279.7 million compared with $230.3 million in the prior quarter.
The Zacks Consensus Estimate for Badger Meter’s 2024 EPS is pegged at $4.06, up 4.4% in the past 30 days. BMI’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 12.9%. The long-term earnings growth rate is 17.9%. Shares of BMI have risen 23.2% in the past year.
In the last reported quarter, BMI reported earnings of $1.12 per share for the second quarter of 2024, beating the Zacks Consensus Estimate by 14.3%. Also, the bottom line compared favorably with the year-ago quarter’s EPS of 76 cents. Quarterly net sales were $216.7 million, up 23% from $175.9 million in the year-ago quarter and surpassed the consensus mark by 7.86%. The uptick was attributed to healthy customer demand for its smart water solutions, smooth operational execution and accretive customer backlog conversion.
The Zacks Consensus Estimate for Onto Innovation’s 2024 EPS is pegged at $5.05, unchanged in the past 30 days. ONTO’s earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing the remaining one, with the average surprise being 2.6%. Shares of ONTO have gained 83.1% in the past year.
The Zacks Consensus Estimate for Generac’s 2024 EPS is pegged at $6.16. GNRC’s earnings beat the Zacks Consensus Estimate in two of the last four quarters while missing in the remaining quarters, with the average surprise being 5.8%. The long-term earnings growth rate is 12%.
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Fortive (FTV) Q2 Earnings Beat Estimates, Revenues Rise Y/Y
Fortive Corporation (FTV - Free Report) reported second-quarter 2024 adjusted earnings per share (EPS) of 93 cents, which topped the Zacks Consensus Estimate by 1.1%. The bottom line increased 9% year over year.
Revenues rose 2% year over year to $1.55 billion. However, it missed the Zacks Consensus Estimate by 0.6%. Core revenues were flat year over year.
The year-over-year improvement in the top line was driven by continued momentum in the Fortive Business System. Steady momentum in Intelligent Operating Solutions and Advanced Healthcare Solutions’ segments acted as a catalyst.
The company tweaked guidance for 2024 owing to foreign exchange headwinds and a revised outlook at Precision Technologies. Revenues are now anticipated to be between $6.25 billion and $6.3 billion compared with the previous guidance of $6.35 billion and $6.425 billion, indicating 3-4% growth from the year-ago levels. The Zacks Consensus Estimate is pegged at $6.41 billion.
Fortive Corporation Price, Consensus and EPS Surprise
Fortive Corporation price-consensus-eps-surprise-chart | Fortive Corporation Quote
Management now projects adjusted net EPS between $3.80 and $3.86 compared with the previous guidance of $3.77 and $3.86. The Zacks Consensus Estimate is pegged at $3.81
Core revenue growth is anticipated to be between 2% and 3%. Free cash flow is forecasted to be $1.365 billion.
For third-quarter 2024, adjusted net EPS is estimated to be in the range of 92-95 cents. Revenues are expected in the $1.535-$1.560 billion band. The Zacks Consensus Estimate for third-quarter EPS and revenues is pegged at 96 cents and $1.59 billion, respectively.
Free cash flow is forecasted to be $360 million. Core revenue growth is anticipated to be between 2% and 3.5%.
Following the results and subdued outlook, the stock was down 8.2% on Jul 24 and closed the session at $70.40. In the past year, shares of FTV have lost 8.2% of their value compared with the sub-industry’s growth of 4.8%.
Image Source: Zacks Investment Research
Top Line in Detail
Fortive operates under the following three organized segments.
Intelligent Operating Solutions: The segment generated revenues of $677 million (contributing 43.6% to total revenues), up 4% on a year-over-year basis.
Precision Technologies: Segmental revenues totaled $552 million (35.5%), down 1.5% year over year.
Advanced Healthcare Solutions: This segment registered revenues of $324 million (20.9%), up 3% year over year.
Operating Details
In the reported quarter, gross profit increased 2.5% to $928.3 million on a year-over-year basis.
Adjusted operating margin was 26.9%, extending 90 bps on a year-over-year basis.
Segment-wise, the adjusted operating margins of Intelligent Operating Solutions and Precision Technologies were 32.8% and 24.8%, contracting 20 bps and 10 bps, respectively, year over year.
Advanced Healthcare Solutions’ adjusted operating margin of 26.4% rose 260 bps.
Balance Sheet & Cash Flow
As of Jun 28, 2024, cash and cash equivalents were $644.1 million compared with $704.6 million as of Mar 29.
As of Jun 28, 2024, accounts receivables were $934.5 million compared with $962.6 million as of Mar 29.
FTV generated an operating cash flow of $308.9 million for the second quarter compared with 256.7 million in the previous quarter. Non-GAAP free cash flow was $279.7 million compared with $230.3 million in the prior quarter.
Zacks Rank and Key Picks
Currently, Fortive has a Zacks Rank #3 (Hold).
Some better-ranked stocks worth consideration in the broader technology space are Badger Meter (BMI - Free Report) , Generac Holdings (GNRC - Free Report) and Onto Innovation (ONTO - Free Report) . Badger Meter sports a Zacks Rank 1 (Strong Buy), while GNRC and ONTO carry a Zacks Rank #2 (Buy) each, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Badger Meter’s 2024 EPS is pegged at $4.06, up 4.4% in the past 30 days. BMI’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 12.9%. The long-term earnings growth rate is 17.9%. Shares of BMI have risen 23.2% in the past year.
In the last reported quarter, BMI reported earnings of $1.12 per share for the second quarter of 2024, beating the Zacks Consensus Estimate by 14.3%. Also, the bottom line compared favorably with the year-ago quarter’s EPS of 76 cents. Quarterly net sales were $216.7 million, up 23% from $175.9 million in the year-ago quarter and surpassed the consensus mark by 7.86%. The uptick was attributed to healthy customer demand for its smart water solutions, smooth operational execution and accretive customer backlog conversion.
The Zacks Consensus Estimate for Onto Innovation’s 2024 EPS is pegged at $5.05, unchanged in the past 30 days. ONTO’s earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing the remaining one, with the average surprise being 2.6%. Shares of ONTO have gained 83.1% in the past year.
The Zacks Consensus Estimate for Generac’s 2024 EPS is pegged at $6.16. GNRC’s earnings beat the Zacks Consensus Estimate in two of the last four quarters while missing in the remaining quarters, with the average surprise being 5.8%. The long-term earnings growth rate is 12%.