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Fortive Gears Up to Report Q3 Earnings: What's in the Offing?
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Fortive Corporation (FTV - Free Report) is scheduled to release third-quarter 2024 earnings on Oct. 30, before the closing bell.
Stay up-to-date with all quarterly releases: See ZacksEarnings Calendar.
Management expects total revenues to be in the range of $1.535-$1.560 billion. The Zacks Consensus Estimate for revenues is currently pegged at $1.55 billion, suggesting an increase of 3.5% from the prior-year quarter's level.
Non-GAAP earnings per share (EPS) are estimated to be in the range of 92-95 cents. The Zacks Consensus Estimate is pegged at 93 cents, indicating an increase of 9.4%.
The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing once. It delivered a trailing four-quarter earnings surprise of 2.6%, on average. Shares of Fortive have risen 15.3% in the past year compared with the sub-industry’s growth of 23.9%.
Image Source: Zacks Investment Research
Factors to Note
Fortive expects the top line to grow at a range of 3-4.5%, driven by solid demand trends across Intelligent Operating Solutions and Healthcare business segments amid a near-about flat core growth at Precision Technologies business. Core revenue growth is anticipated to be between 2% and 3.5%. The Fortive Business System remains key to its strategy, promoting continuous improvement in operational efficiency.
Synergies stemming from strategic acquisitions are expected to have aided in its top-line expansion.
Fortive’s Intelligent Operating Solutions and Advanced Healthcare Solutions continue to build momentum, driven by resilient and recurring revenue streams along with the launch of new products strategically aligned with long-term growth trends. Successful capital deployment strategies within these segments have acted as catalysts for continued growth and innovation. Strength in Fluke revenues, driven by innovative launches and healthy uptake of its product, is likely to have cushioned segmental revenues.
However, delayed military and government research and development (R&D) spending and slower recovery in China affecting Tektronix’s sales and softness at Sensing Technologies are likely to pose headwinds to the Precision Technologies segment’s performance. Forex fluctuations, global macro weakness and a high-debt burden are added woes.
In the quarter under review, FTV announced its plans to pursue a tax-free spin-off of its Precision Technologies segment and form two independent, publicly traded companies with separate business models and investment policies. The spin-off is expected to be completed in the fourth quarter of 2025, pending certain conditions. The new company will focus on its key technologies in test and measurement, specialty sensors and aerospace and defense subsystems. With improving margins and cash flow performance, the entity will be well-equipped to invest in organic growth, return cash to shareholders and pursue merger & acquisition opportunities. Post the spin-off announcement, FTV has made no changes to its third-quarter and full-year 2024 outlook. It continues to expect its share buyback program to boost earnings per share growth in 2025.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Fortive this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Fortive has an Earnings ESP of +0.15%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some other stocks you may consider, as our model shows that these, too, have the right combination of elements to beat on earnings this season.
Microsoft Corporation (MSFT - Free Report) currently has an Earnings ESP of +0.35% and a Zacks Rank #3.
MSFT is scheduled to report quarterly earnings on Oct. 30. The Zacks Consensus Estimate for MSFT’s to-be-reported quarter’s earnings and revenues is pegged at $3.08 per share and $64.41 billion, respectively. Shares of MSFT have gained 26.9% in the past year.
Crocs, Inc. (CROX - Free Report) presently has an Earnings ESP of +0.61% and a Zacks Rank #2. CROX is scheduled to report quarterly numbers on Oct. 29. The Zacks Consensus Estimate for CROX’s to-be-reported quarter’s earnings and revenues is pegged at $3.13 per share and $1.05 billion, respectively. Shares of CROX have risen 52.9% in the past year.
Visa Inc. (V - Free Report) has an Earnings ESP of +0.05% and a Zacks Rank #3 at present. Visa is scheduled to report quarterly figures on Oct. 29. The Zacks Consensus Estimate for Visa’s to-be-reported quarter’s earnings and revenues is pegged at $2.58 per share and $9.49 billion, respectively. Shares of V have soared 20.9% in the past year.
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Fortive Gears Up to Report Q3 Earnings: What's in the Offing?
Fortive Corporation (FTV - Free Report) is scheduled to release third-quarter 2024 earnings on Oct. 30, before the closing bell.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Management expects total revenues to be in the range of $1.535-$1.560 billion. The Zacks Consensus Estimate for revenues is currently pegged at $1.55 billion, suggesting an increase of 3.5% from the prior-year quarter's level.
Non-GAAP earnings per share (EPS) are estimated to be in the range of 92-95 cents. The Zacks Consensus Estimate is pegged at 93 cents, indicating an increase of 9.4%.
The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing once. It delivered a trailing four-quarter earnings surprise of 2.6%, on average. Shares of Fortive have risen 15.3% in the past year compared with the sub-industry’s growth of 23.9%.
Image Source: Zacks Investment Research
Factors to Note
Fortive expects the top line to grow at a range of 3-4.5%, driven by solid demand trends across Intelligent Operating Solutions and Healthcare business segments amid a near-about flat core growth at Precision Technologies business. Core revenue growth is anticipated to be between 2% and 3.5%. The Fortive Business System remains key to its strategy, promoting continuous improvement in operational efficiency.
Synergies stemming from strategic acquisitions are expected to have aided in its top-line expansion.
Fortive’s Intelligent Operating Solutions and Advanced Healthcare Solutions continue to build momentum, driven by resilient and recurring revenue streams along with the launch of new products strategically aligned with long-term growth trends. Successful capital deployment strategies within these segments have acted as catalysts for continued growth and innovation. Strength in Fluke revenues, driven by innovative launches and healthy uptake of its product, is likely to have cushioned segmental revenues.
However, delayed military and government research and development (R&D) spending and slower recovery in China affecting Tektronix’s sales and softness at Sensing Technologies are likely to pose headwinds to the Precision Technologies segment’s performance. Forex fluctuations, global macro weakness and a high-debt burden are added woes.
Fortive Corporation Price and EPS Surprise
Fortive Corporation price-eps-surprise | Fortive Corporation Quote
Key Recent Development
In the quarter under review, FTV announced its plans to pursue a tax-free spin-off of its Precision Technologies segment and form two independent, publicly traded companies with separate business models and investment policies. The spin-off is expected to be completed in the fourth quarter of 2025, pending certain conditions. The new company will focus on its key technologies in test and measurement, specialty sensors and aerospace and defense subsystems. With improving margins and cash flow performance, the entity will be well-equipped to invest in organic growth, return cash to shareholders and pursue merger & acquisition opportunities. Post the spin-off announcement, FTV has made no changes to its third-quarter and full-year 2024 outlook. It continues to expect its share buyback program to boost earnings per share growth in 2025.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Fortive this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Fortive has an Earnings ESP of +0.15%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: FTV currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks With Favorable Combination
Here are some other stocks you may consider, as our model shows that these, too, have the right combination of elements to beat on earnings this season.
Microsoft Corporation (MSFT - Free Report) currently has an Earnings ESP of +0.35% and a Zacks Rank #3.
MSFT is scheduled to report quarterly earnings on Oct. 30. The Zacks Consensus Estimate for MSFT’s to-be-reported quarter’s earnings and revenues is pegged at $3.08 per share and $64.41 billion, respectively. Shares of MSFT have gained 26.9% in the past year.
Crocs, Inc. (CROX - Free Report) presently has an Earnings ESP of +0.61% and a Zacks Rank #2. CROX is scheduled to report quarterly numbers on Oct. 29. The Zacks Consensus Estimate for CROX’s to-be-reported quarter’s earnings and revenues is pegged at $3.13 per share and $1.05 billion, respectively. Shares of CROX have risen 52.9% in the past year.
Visa Inc. (V - Free Report) has an Earnings ESP of +0.05% and a Zacks Rank #3 at present. Visa is scheduled to report quarterly figures on Oct. 29. The Zacks Consensus Estimate for Visa’s to-be-reported quarter’s earnings and revenues is pegged at $2.58 per share and $9.49 billion, respectively. Shares of V have soared 20.9% in the past year.