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Fortive (FTV) Gears Up for Q3 Earnings: What's in the Cards?

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Fortive Corporation (FTV - Free Report) is slated to report third-quarter 2019 results on Oct 24. In the last reported quarter, it delivered a positive earnings surprise of 1.12%.

The company topped the Zacks Consensus Estimate in three of the trailing four quarters, recording average positive surprise of 1.53%.

Performance in the Last Reported Quarter

Fortive had reported second-quarter 2019 non-GAAP earnings of 90 cents per share, which surpassed the Zacks Consensus Estimate by a penny and increased 18.4% from the year-ago period.

In addition, revenues of $1.86 billion outpaced the Zacks Consensus Estimate by 3.29% and improved 2% on a year-over-year basis.

Fortive Corporation Price and EPS Surprise

 

Estimates for Q3

Fortive expects third-quarter 2019 non-GAAP earnings in the range of 83-88 cents per share. The Zacks Consensus Estimate for earnings is currently pegged at 87 cents, indicating growth of 1.16% from the year-ago quarter.

The Zacks Consensus Estimate for revenues is currently pegged at $1.88 billion, indicating growth of 2.3% from the year-ago quarter.

Let’s see how things have shaped up for this announcement.

Acquisitions & Portfolio Strength — Key Catalysts

Fortive has made strong endeavors toward innovation and expansion of key offerings on the back of strong and accretive acquisitions. The acquisitions including Industrial Scientific and Landauer are expected to have driven its performance in the to-be-reported quarter.

Also, the company completed the acquisition of Advanced Sterilization Products from Johnson & Johnson’s (JNJ) subsidiary, Ethicon, Inc., for approximately $2.7 billion. Third-quarter revenues are expected to have benefited from this deal.

Strength in the Professional Instrumentation segment — driven by acquisitions — is anticipated to be reflected in the upcoming quarterly results. The Zacks Consensus Estimate for revenues from Professional Instrumentation is pegged at $1.2 billion, indicating a 3.8% year-over-year increase.

The Zacks Consensus Estimate for revenues from the Industrial Technologies segment for the to-be-reported quarter is pegged at $760 million, suggesting 4% year-over-year improvement.

Earnings Whispers

Our proven model 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 chances of an earnings beat.

Earnings ESP: The company has an Earnings ESP of +0.77%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Fortive has a Zacks Rank #3.

Other Stocks That Warrant a Look

Here are a few other stocks worth considering as our model shows that these too have the right combination of elements to deliver an earnings beat in the upcoming releases.

Cadence Bancorp (CADE - Free Report) has an Earnings ESP of +5.69% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Veoneer, Inc. (VNE - Free Report) has an Earnings ESP of +7.17% and a Zacks Rank #2.

eBay Inc. (EBAY - Free Report) has an Earnings ESP of +5.31% and a Zacks Rank of 3.

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