Fortive Corporation (FTV) reported solid first-quarter fiscal year 2024 (Q1 FY24) results, driven by growth across its segments and margin expansion. Revenue increased by 4% year-over-year (Y/Y) to $1.525 billion, marginally missing the consensus estimate of $1.527 billion. The company’s Intelligent Operating Solutions segment saw a 5% Y/Y increase in sales to $666 million, while Precision Technologies and Advanced Healthcare Solutions grew by 3% Y/Y to $559 million and 4% Y/Y to $300 million, respectively. Fortive’s adjusted operating margin improved by 110 basis points Y/Y to 25.1%, primarily due to substantial gross margin expansion. This contributed to an 11% Y/Y increase in adjusted earnings per share (EPS) to 83 cents, surpassing the consensus estimate of 79 cents. The company’s operating cash flow was $257 million, and free cash flow increased by 54% to $230 million during the quarter. James A. Lico, President and CEO of Fortive, attributed the company’s strong performance to the resilience and strength of its diversified portfolio of businesses, emphasizing the effectiveness of the Fortive Business System (FBS). Fortive declared a quarterly cash dividend of $0.08 per share, payable on June 28, 2024, to stockholders of record as of May 31, 2024. The company adjusted its revenue forecast for FY24 to $6.35 billion-$6.43 billion, slightly lower than its previous range of $6.4 billion-$6.5 billion. However, Fortive raised its adjusted EPS outlook to $3.77-$3.86, up from its earlier estimate of $3.73-$3.85. For the second quarter of FY24 (Q2 FY24), Fortive anticipates revenue of approximately $1.6 billion, slightly below the consensus estimate of $1.62 billion. The company expects adjusted EPS to be in the range of $0.90-$0.93, compared to the consensus estimate of $0.94. Despite the positive earnings report, FTV shares were trading 7.24% lower at $74.86 in premarket trading on Wednesday. Investors can gain exposure to Fortive stock through ETFs such as Brookstone Intermediate Bond ETF (BOND), Brookstone Growth Stock ETF (BGRO), and Pacer US Cash Cows Growth ETF (BUL).
Fortive Reports Strong Q1 Results, Raises Adjusted EPS Outlook
