We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ITT Q1 Earnings & Revenues Surpass Estimates, Decline Y/Y
Read MoreHide Full Article
ITT Inc. (ITT - Free Report) reported better-than-expected results in first-quarter 2020, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
In the quarter, the company pulled off a positive earnings surprise of 8.1%. Quarterly adjusted earnings were 80 cents per share, outpacing the Zacks Consensus Estimate of 74 cents. However, the bottom line declined 12.1% from the year-ago figure.
Revenues of $663.3 million were down 4.6% year over year. However, the top line surpassed the consensus mark of $623 million by 6.4%. Also, revenues fell 5% on an organic basis.
First-quarter revenues of Industrial Process were $227 million, up 5% year over year. Organic sales climbed 1%, driven by an increase in pump projects.
Quarterly revenues of Motion Technologies declined 5% year over year to $298 million. Organic sales decreased 3% in the quarter mainly due to lower Friction sales on account of soft demand in China and Europe, owing to the coronavirus outbreak.
Connect & Control Technologies generated $139 million revenues, down 16% year over year. Organic sales dipped 17% due to temporary plant shutdowns in China and Europe, owing to the coronavirus outbreak, lower commercial and defense components sales.
Costs/Margins
Cost of sales in the first quarter was $453.9million, down 4.8% year over year. Sales and marketing expenses were $41.6 million compared with $40.2 million in the year-ago quarter.
Gross profit margin was 31.6%, up 10 basis points (bps).
Income tax expenses were $24.7 million, up from $19.7 million.
Balance Sheet/Cash Flow
Exiting the first quarter, ITT had cash and cash equivalents of $839.9 million, up from $612.1 million as of Dec 31, 2019.
In the first three months of 2020, the company generated $53.5 million in cash from operating activities, higher than $42.1 million recorded in the year-ago comparable period. Capital expenditure totaled $22.2 million, declining from $29.2 million spent in the year-ago comparable period. Free cash flow was $31.3 million, up from $12.9 million reported a year ago.
2020 Guidance
On uncertainties, regarding the impacts of the coronavirus outbreak on financial and operating results, ITT has now withdrawn its previously announced guidance for 2020.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #4 (Sell).
Acco Brands delivered a positive earnings surprise of 19.04%, on average, in the trailing four quarters.
CECO Environmental delivered a positive earnings surprise of 26.98%, on average, in the trailing four quarters.
Intellicheck delivered a positive earnings surprise of 36.91%, on average, in the trailing four quarters.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
ITT Q1 Earnings & Revenues Surpass Estimates, Decline Y/Y
ITT Inc. (ITT - Free Report) reported better-than-expected results in first-quarter 2020, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
In the quarter, the company pulled off a positive earnings surprise of 8.1%. Quarterly adjusted earnings were 80 cents per share, outpacing the Zacks Consensus Estimate of 74 cents. However, the bottom line declined 12.1% from the year-ago figure.
Revenues of $663.3 million were down 4.6% year over year. However, the top line surpassed the consensus mark of $623 million by 6.4%. Also, revenues fell 5% on an organic basis.
ITT Inc. Price, Consensus and EPS Surprise
ITT Inc. price-consensus-eps-surprise-chart | ITT Inc. Quote
Segmental Breakup
First-quarter revenues of Industrial Process were $227 million, up 5% year over year. Organic sales climbed 1%, driven by an increase in pump projects.
Quarterly revenues of Motion Technologies declined 5% year over year to $298 million. Organic sales decreased 3% in the quarter mainly due to lower Friction sales on account of soft demand in China and Europe, owing to the coronavirus outbreak.
Connect & Control Technologies generated $139 million revenues, down 16% year over year. Organic sales dipped 17% due to temporary plant shutdowns in China and Europe, owing to the coronavirus outbreak, lower commercial and defense components sales.
Costs/Margins
Cost of sales in the first quarter was $453.9million, down 4.8% year over year. Sales and marketing expenses were $41.6 million compared with $40.2 million in the year-ago quarter.
Gross profit margin was 31.6%, up 10 basis points (bps).
Income tax expenses were $24.7 million, up from $19.7 million.
Balance Sheet/Cash Flow
Exiting the first quarter, ITT had cash and cash equivalents of $839.9 million, up from $612.1 million as of Dec 31, 2019.
In the first three months of 2020, the company generated $53.5 million in cash from operating activities, higher than $42.1 million recorded in the year-ago comparable period. Capital expenditure totaled $22.2 million, declining from $29.2 million spent in the year-ago comparable period. Free cash flow was $31.3 million, up from $12.9 million reported a year ago.
2020 Guidance
On uncertainties, regarding the impacts of the coronavirus outbreak on financial and operating results, ITT has now withdrawn its previously announced guidance for 2020.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks are Acco Brands Corporation (ACCO - Free Report) , CECO Environmental Corp. and Intellicheck, Inc. (IDN - Free Report) . All the companies currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Acco Brands delivered a positive earnings surprise of 19.04%, on average, in the trailing four quarters.
CECO Environmental delivered a positive earnings surprise of 26.98%, on average, in the trailing four quarters.
Intellicheck delivered a positive earnings surprise of 36.91%, on average, in the trailing four quarters.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>