Fortive Corporation (FTV - Free Report) reported second-quarter 2020 earnings of 68 cents per share, which outpaced the Zacks Consensus Estimate of 58 cents. The figure decreased 24.4% from the year-ago quarter but increased 8.1% on a sequential basis.
Revenues decreased 15.7% year over year and 8.3% sequentially to $1.57 billion. Also, core revenues declined 16.8% from the year-ago quarter.
However, the top line outpaced the Zacks Consensus Estimate by 2.9%.
Top Line in Detail
Fortive operates under the following two organized segments.
Professional Instrumentation: The segment generated revenues of $1.03 billion (accounting for 66% of total second-quarter revenues), which decreased 11% on a year-over-year basis.
Industrial Technologies: This segment generated revenues of $533.7 million (34% of total revenues), which declined 23.7% from the prior-year quarter.
Operating Details
In the second quarter, gross margin came in at 51.8%, which expanded 330 basis points (bps) year over year.
Total operating expenses were $623.2 million, reflecting a 4.8% year-over-year decrease. As a percentage of revenues, both selling, general & administrative expenses as well as research & development costs increased from the year-ago quarter.
Operating margin was 12.2%, which contracted 120 bps on a year-over-year basis.
Segment wise, operating margin from Professional Instrumentation came in at 13.1%, which expanded 200 bps year over year.
Industrial Technologies operating margins came in at 15.5% versus 20.7% in the year-ago quarter.
Guidance
Though the company did not provide full guidance for the third quarter, it expects total revenues to decline 5-8% on a year-over-year basis. The projection, however, indicates a sequential improvement.
Zacks Rank & Other Key Picks
Fortive currently has a Zacks Rank #2 (Buy). Other top-ranked stocks in the broader technology sector include Microchip Technology Incorporated (MCHP - Free Report) , eBay (EBAY - Free Report) and Advanced Micro Devices, Inc. (AMD - Free Report) . While Microchip Technology and eBay sport a Zacks Rank #1 (Strong Buy), Advanced Micro carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth for Microchip Technology, eBay, and Advanced Micro is currently projected at 14.5%, 11.7% and 40.3%, respectively.
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Fortive Corporation (FTV - Free Report) reported second-quarter 2020 earnings of 68 cents per share, which outpaced the Zacks Consensus Estimate of 58 cents. The figure decreased 24.4% from the year-ago quarter but increased 8.1% on a sequential basis.
Revenues decreased 15.7% year over year and 8.3% sequentially to $1.57 billion. Also, core revenues declined 16.8% from the year-ago quarter.
However, the top line outpaced the Zacks Consensus Estimate by 2.9%.
Top Line in Detail
Fortive operates under the following two organized segments.
Professional Instrumentation: The segment generated revenues of $1.03 billion (accounting for 66% of total second-quarter revenues), which decreased 11% on a year-over-year basis.
Industrial Technologies: This segment generated revenues of $533.7 million (34% of total revenues), which declined 23.7% from the prior-year quarter.
Operating Details
In the second quarter, gross margin came in at 51.8%, which expanded 330 basis points (bps) year over year.
Total operating expenses were $623.2 million, reflecting a 4.8% year-over-year decrease. As a percentage of revenues, both selling, general & administrative expenses as well as research & development costs increased from the year-ago quarter.
Operating margin was 12.2%, which contracted 120 bps on a year-over-year basis.
Segment wise, operating margin from Professional Instrumentation came in at 13.1%, which expanded 200 bps year over year.
Industrial Technologies operating margins came in at 15.5% versus 20.7% in the year-ago quarter.
Guidance
Though the company did not provide full guidance for the third quarter, it expects total revenues to decline 5-8% on a year-over-year basis. The projection, however, indicates a sequential improvement.
Zacks Rank & Other Key Picks
Fortive currently has a Zacks Rank #2 (Buy). Other top-ranked stocks in the broader technology sector include Microchip Technology Incorporated (MCHP - Free Report) , eBay (EBAY - Free Report) and Advanced Micro Devices, Inc. (AMD - Free Report) . While Microchip Technology and eBay sport a Zacks Rank #1 (Strong Buy), Advanced Micro carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth for Microchip Technology, eBay, and Advanced Micro is currently projected at 14.5%, 11.7% and 40.3%, respectively.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained an impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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