ITT Inc. (ITT - Free Report) reported better-than-expected second-quarter 2021 results, with earnings and revenues surpassing the Zacks Consensus Estimate.
Quarterly adjusted earnings were 94 cents per share, outpacing the Zacks Consensus Estimate of 90 cents, delivering a surprise of 4.4%. Also, the bottom line increased 64.9% from the year-ago quarter.
Revenues of $691.6 million were up 34.4% year over year and jumped 29.5% on an organic basis. The top line surpassed the consensus mark of $644 million by 7.3%.
Segmental Breakup
Second-quarter revenues of Industrial Process were $213.9 million, up 10.7% year over year. Organic sales increased 7.7%, owing to higher pump projects within the oil and gas, chemical and general industrial markets.
Quarterly revenues of Motion Technologies rose 72.4% year over year to $343.6 million. Organic sales increased 63.6%, primarily driven by strength in the global automotive markets and higher Friction sales on account of improved demand.
Connect & Control Technologies generated $134.5 million revenues, up 9.4% year over year. Organic sales grew 8% owing to strength in industrial market partially offset by softness in global commercial aerospace market.
Costs/Margins
Cost of sales in the second quarter was $467 million, up 33% year over year. Sales and marketing expenses were $38.3 million compared with $35.7 million in the year-ago quarter.
Gross profit rose 37.3% on a year-over-year basis to $224.6 million. Gross profit margin was 32.5%, up 70 basis points.
Balance Sheet/Cash Flow
Exiting the second quarter, ITT had cash and cash equivalents of $578.8 million, down from $859.8 million as of Dec 31, 2020. Commercial paper and current maturities of long-term debt were $199.7 million compared with $106.8 million at the end of 2020.
In the first six months of 2021, the company used $231.6 million of net cash from operating activities against $203.1 million generated in the prior-year period. Capital expenditures totaled $35.1 million, increasing from $34.3 million spent a year ago.
In the first six months of 2021, the company repurchased shares worth $61.4 million compared with $83.7 million in the year-ago period. It paid dividends worth $38.1 million compared with $14.6 million a year ago.
Guidance
For 2021, the company anticipates adjusted earnings of $3.90-$4.05 per share compared with $3.80-$4.00 per share predicted earlier.
For the year, the company expects revenues to increase in the range of 11-13%, with organic growth of 8-10%.
Zacks Rank & Other Stocks to Consider
The company currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks are AZZ Inc. (AZZ - Free Report) , Brady Corporation (BRC - Free Report) and Eaton Corporation plc (ETN - Free Report) . While AZZ sports a Zacks Rank #1 (Strong Buy), Brady and Eaton carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
AZZ delivered an earnings surprise of 21.24%, on average, in the trailing four quarters.
Brady delivered an earnings surprise of 1.58%, on average, in the trailing four quarters.
Eaton delivered an earnings surprise of 10.87%, on average, in the trailing four quarters.
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ITT Inc. (ITT - Free Report) reported better-than-expected second-quarter 2021 results, with earnings and revenues surpassing the Zacks Consensus Estimate.
Quarterly adjusted earnings were 94 cents per share, outpacing the Zacks Consensus Estimate of 90 cents, delivering a surprise of 4.4%. Also, the bottom line increased 64.9% from the year-ago quarter.
Revenues of $691.6 million were up 34.4% year over year and jumped 29.5% on an organic basis. The top line surpassed the consensus mark of $644 million by 7.3%.
Segmental Breakup
Second-quarter revenues of Industrial Process were $213.9 million, up 10.7% year over year. Organic sales increased 7.7%, owing to higher pump projects within the oil and gas, chemical and general industrial markets.
Quarterly revenues of Motion Technologies rose 72.4% year over year to $343.6 million. Organic sales increased 63.6%, primarily driven by strength in the global automotive markets and higher Friction sales on account of improved demand.
Connect & Control Technologies generated $134.5 million revenues, up 9.4% year over year. Organic sales grew 8% owing to strength in industrial market partially offset by softness in global commercial aerospace market.
Costs/Margins
Cost of sales in the second quarter was $467 million, up 33% year over year. Sales and marketing expenses were $38.3 million compared with $35.7 million in the year-ago quarter.
Gross profit rose 37.3% on a year-over-year basis to $224.6 million. Gross profit margin was 32.5%, up 70 basis points.
Balance Sheet/Cash Flow
Exiting the second quarter, ITT had cash and cash equivalents of $578.8 million, down from $859.8 million as of Dec 31, 2020. Commercial paper and current maturities of long-term debt were $199.7 million compared with $106.8 million at the end of 2020.
In the first six months of 2021, the company used $231.6 million of net cash from operating activities against $203.1 million generated in the prior-year period. Capital expenditures totaled $35.1 million, increasing from $34.3 million spent a year ago.
In the first six months of 2021, the company repurchased shares worth $61.4 million compared with $83.7 million in the year-ago period. It paid dividends worth $38.1 million compared with $14.6 million a year ago.
Guidance
For 2021, the company anticipates adjusted earnings of $3.90-$4.05 per share compared with $3.80-$4.00 per share predicted earlier.
For the year, the company expects revenues to increase in the range of 11-13%, with organic growth of 8-10%.
Zacks Rank & Other Stocks to Consider
The company currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks are AZZ Inc. (AZZ - Free Report) , Brady Corporation (BRC - Free Report) and Eaton Corporation plc (ETN - Free Report) . While AZZ sports a Zacks Rank #1 (Strong Buy), Brady and Eaton carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
AZZ delivered an earnings surprise of 21.24%, on average, in the trailing four quarters.
Brady delivered an earnings surprise of 1.58%, on average, in the trailing four quarters.
Eaton delivered an earnings surprise of 10.87%, on average, in the trailing four quarters.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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