ITT Inc. (ITT - Free Report) reported better-than-expected first-quarter 2021 results, with earnings and revenues surpassing the Zacks Consensus Estimate.
In the quarter, the company delivered an earnings surprise of 21.8%. Quarterly adjusted earnings were $1.06 per share, outpacing the Zacks Consensus Estimate of 87 cents. Also, the bottom line increased 33% from the year-ago quarter’s figure.
Revenues of $698.4 million were up 5.3% year over year. Also, revenues grew 1.5% on an organic basis. Also, the top line surpassed the consensus mark of $657 million by 6.3%.
Segmental Breakup
First-quarter revenues of Industrial Process were $202.3 million, down 11% year over year. Organic sales declined 12.2%, owing to lower revenues from baseline pumps and oil and gas pump projects as well as weakness across the short-cycle business.
Quarterly revenues of Motion Technologies rose 23.9% year over year to $369.1 million. Organic sales increased 17.1%, primarily driven by strength in the global automotive markets and higher Friction sales on account of improved demand.
Connect & Control Technologies generated $127.3 million revenues, down 8.2% year over year. Organic sales fell 9.7% due to softness across global commercial aerospace and defense.
Costs/Margins
Cost of sales in the first quarter was $469.4 million, up 3.4% year over year. Sales and marketing expenses were $36.7 million compared with $41.6 million in the year-ago quarter.
Gross profit rose 9.4% on a year-over-year basis to $229 million. Gross profit margin was 32.8%, up 120 basis points.
Balance Sheet/Cash Flow
Exiting the first quarter, ITT had cash and cash equivalents of $780.2 million, down from $859.8 million as of Dec 31, 2020. Commercial paper and current maturities of long-term debt were $61.2 million compared with $106.8 million at the end of 2020.
In first three months of 2020, the company generated $70.8 million in net cash from operating activities, higher than $53.5 million recorded in the prior year. Capital expenditures totaled $17.2 million, declining from $22.2 million spent in the year-ago period.
Guidance
For 2021, the company anticipates adjusted earnings of $3.80-$4.00 per share, suggesting growth of 21.9% at the mid-point from the year-ago period’s reported figure.
For the year, the company expects revenues to increase in the range of 8-10%, with organic growth of 5-7%. Also, free cash flow is anticipated to lie in the range of $300-$320 million.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks are Alcoa Corporation (AA - Free Report) , Applied Industrial Technologies, Inc. (AIT - Free Report) and Lakeland Industries, Inc. (LAKE - Free Report) . While Alcoa currently sports a Zacks Rank #1 (Strong Buy), Applied Industrial and Lakeland Industries carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Alcoa delivered an earnings surprise of 56.78%, on average, in the trailing four quarters.
Applied Industrial delivered an earnings surprise of 30.33%, on average, in the trailing four quarters.
Lakeland Industries delivered an earnings surprise of 230.73%, on average, in the trailing four quarters.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>
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 >>
ITT Inc. (ITT - Free Report) reported better-than-expected first-quarter 2021 results, with earnings and revenues surpassing the Zacks Consensus Estimate.
In the quarter, the company delivered an earnings surprise of 21.8%. Quarterly adjusted earnings were $1.06 per share, outpacing the Zacks Consensus Estimate of 87 cents. Also, the bottom line increased 33% from the year-ago quarter’s figure.
Revenues of $698.4 million were up 5.3% year over year. Also, revenues grew 1.5% on an organic basis. Also, the top line surpassed the consensus mark of $657 million by 6.3%.
Segmental Breakup
First-quarter revenues of Industrial Process were $202.3 million, down 11% year over year. Organic sales declined 12.2%, owing to lower revenues from baseline pumps and oil and gas pump projects as well as weakness across the short-cycle business.
Quarterly revenues of Motion Technologies rose 23.9% year over year to $369.1 million. Organic sales increased 17.1%, primarily driven by strength in the global automotive markets and higher Friction sales on account of improved demand.
Connect & Control Technologies generated $127.3 million revenues, down 8.2% year over year. Organic sales fell 9.7% due to softness across global commercial aerospace and defense.
Costs/Margins
Cost of sales in the first quarter was $469.4 million, up 3.4% year over year. Sales and marketing expenses were $36.7 million compared with $41.6 million in the year-ago quarter.
Gross profit rose 9.4% on a year-over-year basis to $229 million. Gross profit margin was 32.8%, up 120 basis points.
Balance Sheet/Cash Flow
Exiting the first quarter, ITT had cash and cash equivalents of $780.2 million, down from $859.8 million as of Dec 31, 2020. Commercial paper and current maturities of long-term debt were $61.2 million compared with $106.8 million at the end of 2020.
In first three months of 2020, the company generated $70.8 million in net cash from operating activities, higher than $53.5 million recorded in the prior year. Capital expenditures totaled $17.2 million, declining from $22.2 million spent in the year-ago period.
Guidance
For 2021, the company anticipates adjusted earnings of $3.80-$4.00 per share, suggesting growth of 21.9% at the mid-point from the year-ago period’s reported figure.
For the year, the company expects revenues to increase in the range of 8-10%, with organic growth of 5-7%. Also, free cash flow is anticipated to lie in the range of $300-$320 million.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks are Alcoa Corporation (AA - Free Report) , Applied Industrial Technologies, Inc. (AIT - Free Report) and Lakeland Industries, Inc. (LAKE - Free Report) . While Alcoa currently sports a Zacks Rank #1 (Strong Buy), Applied Industrial and Lakeland Industries carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Alcoa delivered an earnings surprise of 56.78%, on average, in the trailing four quarters.
Applied Industrial delivered an earnings surprise of 30.33%, on average, in the trailing four quarters.
Lakeland Industries delivered an earnings surprise of 230.73%, on average, in the trailing four quarters.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>
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 >>
Get the latest research report on AA - FREE
Get the latest research report on ITT - FREE
Get the latest research report on AIT - FREE
Get the latest research report on LAKE - FREE