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Fortive (FTV) to Report Q3 Earnings: What's in the Cards?

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Fortive Corporation (FTV - Free Report) is scheduled to report third-quarter 2021 results on Oct 28.

For the third quarter, the company expects adjusted net earnings of 62-66 cents per share. The Zacks Consensus Estimate for the same is pegged at 65 cents per share, indicating a decline of 30.8% from the prior-year quarter’s reported number.

Further, the Zacks Consensus Estimate for revenues is pegged at $1.32 billion, suggesting a fall of 30.6% from the year-ago quarter’s reported figure.

The company’s bottom line beat the Zacks Consensus Estimate in all of the trailing four quarters, delivering an earnings surprise of 8.69%, on average.

Fortive Corporation Price and EPS Surprise

 

Fortive Corporation Price and EPS Surprise

Fortive Corporation price-eps-surprise | Fortive Corporation Quote

Factors to Consider

The impacts of solid momentum across Intelligent Operating Solutions, Precision Technologies and Advanced Healthcare Solutions are expected to get reflected in the company’s third-quarter results.

Strength across Fortive Business System is expected to have continued benefiting the company’s margin expansion in the to-be-reported quarter.

The company’s strong efforts to scale up data analytics capabilities with FORT, and expanding machine learning capabilities on the back of the ehsAI acquisition are expected to have continued aiding its third-quarter performance.

Portfolio strength is anticipated to have continued benefiting the company in the third quarter. Robust Gilbarco Veeder-Root and Jacobs Vehicle Systems are expected to have contributed well. Also, strength across the portfolio, led by Fluke and Tektronix, is expected to have driven top-line growth.

Apart from this, positive contributions from Industrial Scientific and Landauer acquisitions are expected to get reflected in to-be-reported quarterly results.

Growing SaaS revenues are likely to have contributed well to top-line growth in the quarter under review.

Fortive completed the acquisition of ServiceChannel, a leading provider of a SaaS-based service automation platform for multi-site facility management, in the quarter under review. The acquisition of ServiceChannel has added strength to Fortive’s SaaS portfolio. This is likely to get reflected in the upcoming quarterly results.

The increasing adoption of Fortive’s Advanced Sterilization Products is expected to have benefited top-line growth in the quarter to be reported.

The company’s leaner cost structure, disciplined cost and supply-chain management, tariff mitigation efforts, and persistently strong pricing are anticipated to have helped margins to expand in the third quarter.

However, uncertainties in the operating environment due to challenges posed by the ongoing coronavirus pandemic are expected to have been concerning.

What Our Model Says

Our proven model conclusively predicts an earnings beat for Fortive this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Fortive has an Earnings ESP of +0.15% and a Zacks Rank #3.

Other Stocks to Consider

Here are some other stocks you may consider, as our proven model shows that these too have the right combination of elements to post an earnings beat this quarter.

Trimble (TRMB - Free Report) has an Earnings ESP of +3.64% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Lyft (LYFT - Free Report) has an Earnings ESP of +11.77% and a Zacks Rank of 2, currently.

PerkinElmer (PKI - Free Report) has an Earnings ESP of +5.2% and a Zacks Rank of 2 at present.


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