Advertisement
Singapore markets close in 7 hours 42 minutes

  • Straits Times Index

    3,278.79
    -8.96 (-0.27%)
     

  • Nikkei

    37,634.82
    +6.34 (+0.02%)
     

  • Hang Seng

    17,284.54
    0.00 (0.00%)
     

  • FTSE 100

    8,078.86
    +38.48 (+0.48%)
     

  • Bitcoin USD

    64,128.02
    -299.17 (-0.46%)
     

  • CMC Crypto 200

    1,388.21
    +5.64 (+0.41%)
     

  • S&P 500

    5,048.42
    -23.21 (-0.46%)
     

  • Dow

    38,085.80
    -375.12 (-0.98%)
     

  • Nasdaq

    15,611.76
    -100.99 (-0.64%)
     

  • Gold

    2,341.30
    -1.20 (-0.05%)
     

  • Crude Oil

    83.95
    +0.38 (+0.45%)
     

  • 10-Yr Bond

    4.7060
    +0.0540 (+1.16%)
     

  • FTSE Bursa Malaysia

    1,567.58
    -1.67 (-0.11%)
     

  • Jakarta Composite Index

    7,155.29
    -7,174.53 (-50.07%)
     

  • PSE Index

    6,574.88
    +2.13 (+0.03%)
     

Fortive (FTV) Beats Q2 Earnings Estimates, Lags Revenues

Zacks Equity Research

Fortive Corporation FTV reported second-quarter 2019 earnings of 90 cents per share, surpassing the Zacks Consensus Estimate by a penny. Also, the figure increased 18.4% from the year-ago quarter and 30.4% on a sequential basis.

Revenues also increased 16.4% year over year to $1.86 billion. In addition, core revenues grew 2% from the year-ago quarter. However, the top line missed the Zacks Consensus Estimate by 3.29%.

The company stated that the integration of Advanced Sterilization Products is well on track and should contribute to top-line growth in the near term. Other acquisitions including Industrial Scientific and Landauer aided results in the second quarter.

Notably, shares of Fortive have returned 0.8% in the past year compared with its industry’s 7.7% growth.

 

ADVERTISEMENT

Top Line in Detail

Fortive operates under the following two organized segments.

Professional Instrumentation: The segment generated revenues of $1.1 billion (60.8% of total first-quarter revenues), which increased 27.5% on a year-over-year basis. The increase was driven by contributions from acquisitions.

Industrial Technologies: This segment generated revenues of $731.4 million (39.2% of total revenues), which improved 2.6% from the prior-year quarter.

Fortive Corporation Price, Consensus and EPS Surprise

 

Fortive Corporation Price, Consensus and EPS Surprise
Fortive Corporation Price, Consensus and EPS Surprise

Fortive Corporation price-consensus-eps-surprise-chart | Fortive Corporation Quote

Operating Details

In the second quarter, gross margin came in at 48.5%, which contracted 340 basis points (bps) year over year.

Total operating expenses were $654.5 million, reflecting a 29.2% year-over-year increase. As a percentage of revenues, selling, general & administrative (SG&A) expenses increased from the year-ago quarter, while research & development costs decreased.

Operating margin was 13.4%, which contracted 690 bps on a year-over-year basis.

Segment wise, operating margin from Professional Instrumentation came in at 10.8%, which contracted 1,360 bps year over year.

Industrial Technologies operating margins came in at 16.3%, which expanded 200 bps from the year-ago quarter.

Balance Sheet

During the quarter, the company generated free cash flow of $236 million.

Guidance

For third-quarter 2019, management expects adjusted net earnings in the range of 83-88 cents per share. The corresponding Zacks Consensus Estimate for the quarter is pegged at 97 cents.

For 2019, Fortive expects adjusted net earnings in the range of $3.45-$3.60 per share. The Zacks Consensus Estimate for the same is pegged at $3.59.

Zacks Rank &Stocks to Consider

Currently, Fortive carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the broader technology sector include Alibaba Group Holding Limited BABA, Etsy, Inc. ETSY and eBay Inc. EBAY, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth for Alibaba, Etsy and eBay is currently projected at 26.8%, 19.3% and 9.4%, respectively.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.

See 7 breakthrough stocks now>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
eBay Inc. (EBAY) : Free Stock Analysis Report
 
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
 
Etsy, Inc. (ETSY) : Free Stock Analysis Report
 
Fortive Corporation (FTV) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research