Fortive Sees Q2 Results Below Market; Lifts FY24 Earnings View, But Cuts Revenue Outlook - Update

(RTTNews) - Fortive Corp. (FTV), while reporting higher first-quarter results on Wednesday, issued second-quarter outlook below market, and raised fiscal 2024 earnings forecast, but trimmed revenue outlook.

For the second quarter of 2024, Fortive anticipates net earnings per share of $0.57 to $0.60, adjusted net earnings per share of $0.90 to $0.93 and revenue of around $1.6 billion.

Analysts on average expect the company to report earnings of $0.94 per share on revenues of $1.62 billion, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

For the full year 2024, Fortive now anticipates net earnings per share of $2.61 to $2.70 and adjusted net earnings per share of $3.77 to $3.86. The company previously expected net earnings per share of $2.58 to $2.70 and adjusted earnings per share of $3.73 to $3.85.

Revenue are now expected to be around $6.35 billion to $6.43 billion, down from previously expected $6.4 billion to $6.5 billion.

Analysts expect earnings of $3.80 per share on revenues of $6.48 billion for the year.

In 2023, net earnings per share were $2.43, adjusted earnings per share were $3.43, and revenues were $6.07 billion.

James Lico, President and Chief Executive Officer, stated, "All three segments performed ahead of expectations on core growth, margins, earnings growth, and free cash flow, all enabled by the strength and rigorous application of the Fortive Business System (FBS). We are confident in our raised outlook for the year, continuing our track record of compounding earnings and free cash flow growth by double-digits in 2024."

In its first quarter, Fortive's profit increased from last year and beat the Street estimates.

The company's earnings totaled $207.4 million, or $0.58 per share. This compares with $173.6 million, or $0.49 per share, in last year's first quarter.

Adjusted earnings were $295.3 million or $0.83 per share for the period. Analysts had expected the company to earn $0.79 per share.

The company's revenue for the quarter rose 4.1 percent to $1.52 billion from $1.46 billion last year.

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