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Fortive Corporation (FTV - Free Report) reported second-quarter 2019 earnings of 90 cents per share, surpassing the Zacks Consensus Estimate by a penny. Also, the figure increased 18.4% from the year-ago quarter and 30.4% on a sequential basis.
Revenues also increased 16.4% year over year to $1.86 billion. In addition, core revenues grew 2% from the year-ago quarter. However, the top line missed the Zacks Consensus Estimate by 3.29%.
The company stated that the integration of Advanced Sterilization Products is well on track and should contribute to top-line growth in the near term. Other acquisitions including Industrial Scientific and Landauer aided results in the second quarter.
Notably, shares of Fortive have returned 0.8% in the past year compared with its industry’s 7.7% growth.
Top Line in Detail
Fortive operates under the following two organized segments.
Professional Instrumentation: The segment generated revenues of $1.1 billion (60.8% of total first-quarter revenues), which increased 27.5% on a year-over-year basis. The increase was driven by contributions from acquisitions.
Industrial Technologies: This segment generated revenues of $731.4 million (39.2% of total revenues), which improved 2.6% from the prior-year quarter.
Fortive Corporation Price, Consensus and EPS Surprise
In the second quarter, gross margin came in at 48.5%, which contracted 340 basis points (bps) year over year.
Total operating expenses were $654.5 million, reflecting a 29.2% year-over-year increase. As a percentage of revenues, selling, general & administrative (SG&A) expenses increased from the year-ago quarter, while research & development costs decreased.
Operating margin was 13.4%, which contracted 690 bps on a year-over-year basis.
Segment wise, operating margin from Professional Instrumentation came in at 10.8%, which contracted 1,360 bps year over year.
Industrial Technologies operating margins came in at 16.3%, which expanded 200 bps from the year-ago quarter.
Balance Sheet
During the quarter, the company generated free cash flow of $236 million.
Guidance
For third-quarter 2019, management expects adjusted net earnings in the range of 83-88 cents per share. The corresponding Zacks Consensus Estimate for the quarter is pegged at 97 cents.
For 2019, Fortive expects adjusted net earnings in the range of $3.45-$3.60 per share. The Zacks Consensus Estimate for the same is pegged at $3.59.
Long-term earnings growth for Alibaba, Etsy and eBay is currently projected at 26.8%, 19.3% and 9.4%, respectively.
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A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
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Fortive (FTV) Beats Q2 Earnings Estimates, Lags Revenues
Fortive Corporation (FTV - Free Report) reported second-quarter 2019 earnings of 90 cents per share, surpassing the Zacks Consensus Estimate by a penny. Also, the figure increased 18.4% from the year-ago quarter and 30.4% on a sequential basis.
Revenues also increased 16.4% year over year to $1.86 billion. In addition, core revenues grew 2% from the year-ago quarter. However, the top line missed the Zacks Consensus Estimate by 3.29%.
The company stated that the integration of Advanced Sterilization Products is well on track and should contribute to top-line growth in the near term. Other acquisitions including Industrial Scientific and Landauer aided results in the second quarter.
Notably, shares of Fortive have returned 0.8% in the past year compared with its industry’s 7.7% growth.
Top Line in Detail
Fortive operates under the following two organized segments.
Professional Instrumentation: The segment generated revenues of $1.1 billion (60.8% of total first-quarter revenues), which increased 27.5% on a year-over-year basis. The increase was driven by contributions from acquisitions.
Industrial Technologies: This segment generated revenues of $731.4 million (39.2% of total revenues), which improved 2.6% from the prior-year quarter.
Fortive Corporation Price, Consensus and EPS Surprise
Fortive Corporation price-consensus-eps-surprise-chart | Fortive Corporation Quote
Operating Details
In the second quarter, gross margin came in at 48.5%, which contracted 340 basis points (bps) year over year.
Total operating expenses were $654.5 million, reflecting a 29.2% year-over-year increase. As a percentage of revenues, selling, general & administrative (SG&A) expenses increased from the year-ago quarter, while research & development costs decreased.
Operating margin was 13.4%, which contracted 690 bps on a year-over-year basis.
Segment wise, operating margin from Professional Instrumentation came in at 10.8%, which contracted 1,360 bps year over year.
Industrial Technologies operating margins came in at 16.3%, which expanded 200 bps from the year-ago quarter.
Balance Sheet
During the quarter, the company generated free cash flow of $236 million.
Guidance
For third-quarter 2019, management expects adjusted net earnings in the range of 83-88 cents per share. The corresponding Zacks Consensus Estimate for the quarter is pegged at 97 cents.
For 2019, Fortive expects adjusted net earnings in the range of $3.45-$3.60 per share. The Zacks Consensus Estimate for the same is pegged at $3.59.
Zacks Rank &Stocks to Consider
Currently, Fortive carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the broader technology sector include Alibaba Group Holding Limited (BABA - Free Report) , Etsy, Inc. (ETSY - Free Report) and eBay Inc. (EBAY - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth for Alibaba, Etsy and eBay is currently projected at 26.8%, 19.3% and 9.4%, respectively.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
See 7 breakthrough stocks now>>