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ITT's Enidine Brand Secures Contracts Worth $15 Million

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Premium manufacturing company, ITT Inc.’s (ITT - Free Report) Enidine brand recently clinched contracts from major aircraft manufacturers to roll out its proprietary rate controls, isolators and rotary hinge dampers. The contracts, worth approximately $15 million, will span out over a period of 10 years.

The load compensating rate controls will be deployed in a new commercial airliner, scheduled to commence operations in 2018. Leveraging on ITT’s patented weight sensing valve, these rate controls will enhance the performance of overhead, drop down stowage bins. Another new series of narrow-body, medium-range and twin-engine airliners scheduled for launch in 2018, will install elastomeric isolators for noise reduction inside the aircraft.

Further, the company’s rotary hinge dampers, which will facilitate opening of bin doors at a controlled speed, will be used in a new wide-body commercial jet airliner, scheduled for delivery in 2017.

Bright Prospects for ITT Control Technologies

ITT’s Control Technologies, which manages some of the company’s leading brands like Enidine, Turn-Act and Aerospace Controls, has been benefiting from favorable conditions in the aerospace and defense markets. This business segment is on a constant lookout to elevate its position in the infrastructure, energy, automation and aerospace markets.

Currently, this segment is focusing on expanding in the higher-margin aftermarket business by concentrating on low-cost technological solutions. It is steadily shifting several of its product lines to a low-cost region to optimize cost structure. We believe that innovative technology, diligent restructuring efforts and favorable market trends will be conducive to the top-line performance of this Zacks Rank #3 (Hold) company, going forward.

Upward Trending Estimates

Year to date, ITT has charted an impressive growth of 13.8%, outperforming the Zacks categorized Diversified Operations industry average of 7.7%. With two in-line earnings and two beats, the company has an average positive surprise of 4.3%. Also, the company’s earnings estimate revision has been trending north over the past month, highlighting positive broker sentiment. The Zacks Consensus Estimate for fiscal 2016 earnings has risen from $2.25 to $2.27.

Stocks to Consider

Some better-ranked stocks in the sector include Macquarie Infrastructure Corp. , Leucadia National Corp. and Hitachi, Ltd. (HTHIY - Free Report) . While Macquarie Infrastructure and Leucadia National sport a Zacks Rank #1 (Strong Buy), Hitachi carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Macquarie Infrastructure has an impressive average earnings surprise of 29.6% over the trailing four quarters.

Leucadia has a long-term earnings growth expectation of 18.0%.

Hitachi has a whopping average earnings surprise of 103.5% for the trailing four quarters.

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