ITT Q2 Results Down, Beat Estimates; Cuts FY16 Forecast - Quick Facts

(RTTNews) - ITT Inc. (ITT), a manufacturer of highly engineered critical components, reported Thursday that its second-quarter net income plunged to $32.8 million or $0.36 per share from $142.3 million or $1.58 per share last year.

Adjusted earnings per share were $0.67, compared to $0.69 last year.

On average, 13 analysts polled by Thomson Reuters expected earnings of $0.60 per share. Analysts' estimates typically exclude special items.

Revenues edged down to $626.2 million from $628.2 million last year. Organic revenue down 6%. Analysts were looking for revenues of $619.79 million.

In the quarter, strong transportation growth, including the incremental benefits from Wolverine acquisition, offset project declines in global oil and gas and mining markets, softness in the chemical and industrial markets, and unfavorable foreign exchange.

On an adjusted basis, organic revenue declined 6 percent due to weakness across global flow markets.

Looking ahead, the company lowered fiscal 2016 forecast for earnings and revenues, primarily due to its revised volume expectations for the second half of the year at Industrial Process.

The company now expects earnings per share to be $1.40 to $1.62 and the adjusted earnings to be $2.34 to $2.46 with a mid-point of $2.40. The company's previous outlook was $2.42 - $2.68.

Analysts expect earnings of $2.46 per share for the year.

Revenue is now expected to be down 3 percent to down 5 percent, and organic revenue is expected to be down 7 percent to down 9 percent, primarily due to negative impacts from weaker than expected aftermarket activities and lower project revenues due to customer delays at Industrial Process.

Further, the company announced up to an additional $50 million of discretionary repurchases that are expected by the end of the year, primarily depending on the actionability of acquisitions.