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Fortive (FTV) Gears Up for Q1 Earnings: What's in the Cards?

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Fortive Corporation (FTV - Free Report) is slated to report first-quarter 2020 results on Apr 30. In the last reported quarter, it delivered a positive earnings surprise of 6.2%.

The company topped the Zacks Consensus Estimate in three of the trailing four quarters, delivering average positive surprise of 2.2%.

Expectations for Q1

Fortive expects first-quarter 2020 non-GAAP earnings in the range of 70-74 cents per share. The Zacks Consensus Estimate for earnings is currently pegged at $73 cents per share, indicating growth of 5.8% from the year-ago quarter.

The Zacks Consensus Estimate for revenues is pegged at $1.83 billion, indicating growth of 14.7% from the year-ago reported figure.

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

Fortive Corporation Price and EPS Surprise

 

Performance in the Last Reported Quarter

Fortive had reported fourth-quarter 2019 non-GAAP earnings of $1.03 per share, outpacing the Zacks Consensus Estimate of 97 cents. The figure increased 13.2% from the year-ago quarter and 18.4% on a sequential basis.

Revenues increased 13.9% year over year to $2 billion. Core revenues grew 0.4% from the year-ago quarter. Also, the top line surpassed the Zacks Consensus Estimate by 1.2%.

Acquisitions & Portfolio Strength — Key Catalysts

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

Also, the integration of Advanced Sterilization Products is well on track and is likely to have aided the company’s top-line growth.

Strength of the Professional Instrumentation segment — driven by acquisitions — is anticipated to be reflected on the upcoming quarterly results. The Zacks Consensus Estimate for revenues from Professional Instrumentation is pegged at $1.18 billion, indicating a 4.1% year-over-year decrease.

The Zacks Consensus Estimate for revenues from the Industrial Technologies segment for the to-be-reported quarter is pegged at $685 million, suggesting a 11.2% year-over-year decline.

However, higher expenses incurred for these acquisitions and integration issues may negatively impact the upcoming quarterly results. Also, global coronavirus-driven economic crisis are expected to have been major headwinds in the to-be-reported quarter.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Fortive this time around. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.

Earnings ESP: The company has an Earnings ESP of 0.00%. 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 #1.

Stocks That Warrant a Look

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

Pixelworks, Inc. (PXLW - Free Report) has an Earnings ESP of +5.26% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Baidu, Inc. (BIDU - Free Report) has an Earnings ESP of +10.09% and a Zacks Rank of 2.

Etsy, Inc. (ETSY - Free Report) has an Earnings ESP of +8.17% and a Zacks Rank #2.

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