Fortive's (FTV) Q1 Earnings And Revenues Beat Estimates
Zacks Investment Research | Apr 27, 2018 12:17AM ET
Fortive Corporation (NYSE:FTV) reported first-quarter 2018 earnings of 78 cents per share, which surpassed the Zacks Consensus Estimate by four cents. The figure increased 30% from the year-ago quarter but declined 4.9% on a sequential basis. The figure also came ahead of management’s guidance of 72-76 cents.
Revenues declined 3.9% sequentially but surged 13.7% year over year to $1.74 billion. The figure came slightly better than the Zacks Consensus Estimate of $1.71 billion.
This year-over-year growth was driven by strong product portfolio, improved performance in end markets and strengthening Fortive Business System. Further, the recent acquisitions also drove the top line in this quarter. While acquisitions contributed 7.3%, favorable foreign exchange added 3.5%. Moreover, core revenue contributed 2.6%.
We note that shares of Fortive have returned 11.4% over a year, underperforming the Fortive Corporation Quote
Cash Flow
Fortive generated $140 million of free cash flow in the first quarter, which reflects an increase of 15%.
Guidance
For second-quarter 2018, management expects adjusted net earnings in the range of 86-90 cents per share. The Zacks consensus estimate for the upcoming quarter is pegged at 87 cents per share.
For 2018, Fortive revised its guidance of adjusted net earnings from $3.35-$3.45 to $3.40-$3.50 per share. The Zacks consensus estimate for 2018 is pegged at $3.43 per share.
Zacks Rank & Stocks to Consider
Fortive carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader technology sector are Paycom Software (NYSE:PAYC) , Micron Technology (NASDAQ:MU) and Agilent Technologies (NYSE:A) .Original post
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