ITT Inc (ITT) Earnings & Revenues Trump Estimates In Q1
Zacks Investment Research | May 08, 2017 10:47PM ET
ITT Inc. (NYSE:ITT) posted adjusted earnings of 64 cents per share in first-quarter 2017, comfortably beating the Zacks Consensus Estimate of 60 cents by 6.7%. The figure fared even better in year-over-year comparison, having increased 8% from the year-ago tally of 59 cents.
The company is enjoying a truly impressive streak and hasn’t missed earnings estimates for 22 straight quarters.
Despite the impressive beat, the share price remained relatively flat at $41.94 at the close of regular trading session on Monday.
Improved efficiency, robust growth in segment operating income and cost containment actions proved to be tailwinds for the company’s bottom line, while currency headwinds proved to be a drag.
Inside the Headlines
ITT Inc.’s first-quarter revenues came in at $625.8, up 2.7% on a year-over-year basis. The figure also surpassed the Zacks Consensus Estimate of $603 million.
Organic revenues increased 3% year over year. The growth was driven by solid growth in automotive, aerospace and defense markets, which was somewhat offset by project declines in the oil and gas segment.
In terms of segments, Industrial Process revenues declined 11% year over year to $186 million. In addition, organic revenues also fell 11%. Challenging conditions in the oil & gas sector, mining, chemical & industrial markets, along with sluggish aftermarket parts activity, more than offset growth in short-cycle pumps and service businesses. Also, currency fluctuations added to the woes.
Revenues at the Connect and Control Technologies segment were up 6% year over year to $153 million. In addition, organic revenues expanded 7% on a year-over-year basis. Stronger general industrial, defense, and oil & gas connector activity reflected well on the segment. The segment was recently formed by integrating the Interconnect Solutions and Control Technologies segments to streamline operations, capitalize on shared infrastructure and drive long-term growth in target markets.
Motion Technologies revenues continued their strong momentum and climbed 12% year over year to $287 million. Furthermore, organic revenues rose 10%. Significant share gains and market growth in automotive brake pads in China and Europe, and stellar sales to aftermarket customers proved conducive to the top-line improvement. Additionally, higher sales of seals and shims at Wolverine supplemented the sales of this segment.
ITT Inc.’s adjusted operating income rose about 8% year over year to $78 million, mainly driven by restructuring and operational improvement benefits, and higher productivity at connector operating locations.
ITT Inc. Price, Consensus and EPS Surprise
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