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ITT Inc.'s BIW Connector Systems Rolls Out Tri-Lok Ultra
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Global manufacturing company, ITT Inc.’s (ITT - Free Report) brand, BIW Connector Systems, recently unveiled “packer penetrator” solution, Tri-Lok Ultra. This will aid oilfield service companies in boosting their production, minimize costs and extend operational lifetime. ITT Inc. remains optimistic about the solid traction of Tri-Lok Ultra among operators in upstream oil and gas market.
Tri-Lok Ultra: Ideal for Harsh Environment
Tri-Lok Ultra's state-of-the-art solution is engineered to withstand repeated decompression cycles. It can also accelerate the pace of installation and ease of use. Touted as one of the most “versatile” product among its peers, Tri-Lok Ultra can seamlessly fit into packers, as small as 6.5-inches in diameter.
In addition, its ability to withstand pressure, as high as 6000 psi and 204 degrees Celsius, makes it suitable for installations in oil service companies working in harsh conditions, including high temperature and pressure. Such conditions are often found in sites, such as offshore in-well and sea-floor caisson ESP systems, high-temperature oil wells and wells with high intervention costs.
Energy Market Weakness Raise Concern
Despite the product’s impressive features, a reduction in oil and gas prices has been hampering the pumps and connectors business. Increasing level of project delays and order cancellations by customers have been hurting ITT Inc.’s prospects. As upstream oil projects are the most vulnerable to decline in oil and gas prices, the company anticipates revenues to drop, mainly due to project delays, lower capital expenditure on part of clients, high cost of projects and pricing pressures.
Particularly, during third-quarter 2016, the company’s Interconnected Solutions and Industrial Process segments were hurt by the weakness in oil and gas sector and mining project activity, combined with extended delays in maintenance spending. This trend is likely to continue in the future as well. This has led the company to slash its top- and bottom-line guidance for full-year 2016.
Should You Hold?
For the past six months, ITT has charted an impressive growth of 25.5%, outperforming the Zacks categorized Diversified Operations industry average of 3.2%. Also, with two in-line earnings and two beats, the Zacks Rank #3 (Hold) has an average positive surprise of 4.3%. It should be noted that brokers are on the sidelines for the stock as its earnings estimates remained unchanged over the past one month. The Zacks Consensus Estimate remained unchanged at 27 cents over the same time frame.
Though ITT Inc.’s diverse product portfolio, diligent restructuring and strategic product launches remain its major strength; prolonged sluggishness in energy markets will likely restrict growth in the near term. Additionally, the earnings guidance cut, during the third quarter, adds to our concern. Lower project profitability, currency fluctuations and higher tax rates are estimated to offset benefits from effective capital deployment and complimentary acquisitions to stoke growth.
Hitachi has a whopping average earnings surprise of 145.6% for the trailing four quarters.
HC2 Holdings has a projected EPS growth of 21.3% for full-year 2016, far ahead of the industry’s average of 5.7%.
Carlisle Companies has an average positive surprise history of 13.5%, beating estimates all through, over the trailing four quarters.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
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ITT Inc.'s BIW Connector Systems Rolls Out Tri-Lok Ultra
Global manufacturing company, ITT Inc.’s (ITT - Free Report) brand, BIW Connector Systems, recently unveiled “packer penetrator” solution, Tri-Lok Ultra. This will aid oilfield service companies in boosting their production, minimize costs and extend operational lifetime. ITT Inc. remains optimistic about the solid traction of Tri-Lok Ultra among operators in upstream oil and gas market.
Tri-Lok Ultra: Ideal for Harsh Environment
Tri-Lok Ultra's state-of-the-art solution is engineered to withstand repeated decompression cycles. It can also accelerate the pace of installation and ease of use. Touted as one of the most “versatile” product among its peers, Tri-Lok Ultra can seamlessly fit into packers, as small as 6.5-inches in diameter.
In addition, its ability to withstand pressure, as high as 6000 psi and 204 degrees Celsius, makes it suitable for installations in oil service companies working in harsh conditions, including high temperature and pressure. Such conditions are often found in sites, such as offshore in-well and sea-floor caisson ESP systems, high-temperature oil wells and wells with high intervention costs.
Energy Market Weakness Raise Concern
Despite the product’s impressive features, a reduction in oil and gas prices has been hampering the pumps and connectors business. Increasing level of project delays and order cancellations by customers have been hurting ITT Inc.’s prospects. As upstream oil projects are the most vulnerable to decline in oil and gas prices, the company anticipates revenues to drop, mainly due to project delays, lower capital expenditure on part of clients, high cost of projects and pricing pressures.
Particularly, during third-quarter 2016, the company’s Interconnected Solutions and Industrial Process segments were hurt by the weakness in oil and gas sector and mining project activity, combined with extended delays in maintenance spending. This trend is likely to continue in the future as well. This has led the company to slash its top- and bottom-line guidance for full-year 2016.
Should You Hold?
For the past six months, ITT has charted an impressive growth of 25.5%, outperforming the Zacks categorized Diversified Operations industry average of 3.2%. Also, with two in-line earnings and two beats, the Zacks Rank #3 (Hold) has an average positive surprise of 4.3%. It should be noted that brokers are on the sidelines for the stock as its earnings estimates remained unchanged over the past one month. The Zacks Consensus Estimate remained unchanged at 27 cents over the same time frame.
Though ITT Inc.’s diverse product portfolio, diligent restructuring and strategic product launches remain its major strength; prolonged sluggishness in energy markets will likely restrict growth in the near term. Additionally, the earnings guidance cut, during the third quarter, adds to our concern. Lower project profitability, currency fluctuations and higher tax rates are estimated to offset benefits from effective capital deployment and complimentary acquisitions to stoke growth.
Stocks to Consider
Some better-ranked stocks in the industry include Hitachi, Ltd. (HTHIY - Free Report) , HC2 Holdings, Inc. and Carlisle Companies Incorporated (CSL - Free Report) . All three companies hold a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Hitachi has a whopping average earnings surprise of 145.6% for the trailing four quarters.
HC2 Holdings has a projected EPS growth of 21.3% for full-year 2016, far ahead of the industry’s average of 5.7%.
Carlisle Companies has an average positive surprise history of 13.5%, beating estimates all through, over the trailing four quarters.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>