ITT Inc. (ITT - Free Report) reported better-than-expected results in second-quarter 2018.
Earnings/Revenues
Quarterly adjusted earnings came in at 82 cents per share, up 26.2% year over year. The bottom line also surpassed the Zacks Consensus Estimate of 78 cents.
Revenues in the reported quarter were $696.8 million, up 10.4% year over year. The top line also outpaced the Zacks Consensus Estimate of $682 million.
Segmental Break-Up
Revenues in the Industrial Process segment came in at $203.2 million, up 5.7% year over year. Top-line results in the Motion Technologies segment improved 13.9% year over year to $330.3 million. The Connect & Control Technologies segment’s Q2 revenues came in at $164.1 million, up 9.7% year over year.
Costs/Margins
Cost of sales in the reported quarter came in at $470.8 million, higher than $425.9 million recorded in the year-ago quarter. Gross profit margin was 32.4%, down 10 basis points (bps) year over year.
Sales and marketing expenses in the second quarter was $43.4 million, marginally rising 1% year over year. Operating margin in the quarter was 11.5%, up 210 bps year over year.
Balance Sheet/Cash Flow
Exiting the June-end quarter, this Zacks Rank #3 (Hold) company had cash and cash equivalents of $449.6 million, higher than $389.8 million recorded as of Dec 31, 2017. Aggregate non-current liabilities were $1,177.8 million, lower than $1,203 million recorded in 2017-end.
In first-half 2018, the company generated $119.3 million cash from operating activities, up from $92.6 million posted in the comparable period last year. Capital expenditures were $46.3 million, down from $53.3 million recorded in the year-ago tally.
Outlook
ITT is poised to boost its near-term competency on the back of stronger end-market demand and greater operational excellence. The company revised its earnings view for 2018 from $2.95-$3.15 per share to $3.05-$3.15 per share. Organic revenue growth is predicted to lie in the band of 3-5%.
Stocks to Consider
Some better-ranked stocks in the Zacks Conglomerates sector are listed below:
Crane Company (CR - Free Report) carries a Zacks Rank #2 (Buy). The company pulled off an average positive earnings surprise of 3.03% over the last four quarters. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Carlisle Companies Incorporated (CSL - Free Report) also has a Zacks Rank of 2. The company generated an average positive earnings surprise of 12.85% in the trailing four quarters.
Macquarie Infrastructure Company is another Zacks #2 Ranked company. The stock came up with an average positive earnings surprise of 8.05% over the preceding four quarters.
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ITT Inc. (ITT - Free Report) reported better-than-expected results in second-quarter 2018.
Earnings/Revenues
Quarterly adjusted earnings came in at 82 cents per share, up 26.2% year over year. The bottom line also surpassed the Zacks Consensus Estimate of 78 cents.
Revenues in the reported quarter were $696.8 million, up 10.4% year over year. The top line also outpaced the Zacks Consensus Estimate of $682 million.
Segmental Break-Up
Revenues in the Industrial Process segment came in at $203.2 million, up 5.7% year over year. Top-line results in the Motion Technologies segment improved 13.9% year over year to $330.3 million. The Connect & Control Technologies segment’s Q2 revenues came in at $164.1 million, up 9.7% year over year.
Costs/Margins
Cost of sales in the reported quarter came in at $470.8 million, higher than $425.9 million recorded in the year-ago quarter. Gross profit margin was 32.4%, down 10 basis points (bps) year over year.
Sales and marketing expenses in the second quarter was $43.4 million, marginally rising 1% year over year. Operating margin in the quarter was 11.5%, up 210 bps year over year.
Balance Sheet/Cash Flow
Exiting the June-end quarter, this Zacks Rank #3 (Hold) company had cash and cash equivalents of $449.6 million, higher than $389.8 million recorded as of Dec 31, 2017. Aggregate non-current liabilities were $1,177.8 million, lower than $1,203 million recorded in 2017-end.
In first-half 2018, the company generated $119.3 million cash from operating activities, up from $92.6 million posted in the comparable period last year. Capital expenditures were $46.3 million, down from $53.3 million recorded in the year-ago tally.
Outlook
ITT is poised to boost its near-term competency on the back of stronger end-market demand and greater operational excellence. The company revised its earnings view for 2018 from $2.95-$3.15 per share to $3.05-$3.15 per share. Organic revenue growth is predicted to lie in the band of 3-5%.
Stocks to Consider
Some better-ranked stocks in the Zacks Conglomerates sector are listed below:
Crane Company (CR - Free Report) carries a Zacks Rank #2 (Buy). The company pulled off an average positive earnings surprise of 3.03% over the last four quarters. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Carlisle Companies Incorporated (CSL - Free Report) also has a Zacks Rank of 2. The company generated an average positive earnings surprise of 12.85% in the trailing four quarters.
Macquarie Infrastructure Company is another Zacks #2 Ranked company. The stock came up with an average positive earnings surprise of 8.05% over the preceding four quarters.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
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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