Fortive (FTV) Tops Q2 EPS by 2c, Revenues Beat; Offers FY18 EPS Outlook

Fortive (NYSE: FTV) reported Q2 EPS of $0.91, $0.02 better than the analyst estimate of $0.89. Revenue for the quarter came in at $1.86 billion versus the consensus estimate of $1.83 billion.

James A. Lico, President and Chief Executive Officer, stated, “Today we reported another quarter of double-digit adjusted earnings and sales growth and strong free cash flow performance. As we look to the second half of the year, we expect our core growth rate to accelerate versus the first half driven by improving order trends and as acquisitions of Orpak, ISC, and Landauer become part of our core revenue.”

Guidance

• For the third quarter of 2018, Fortive anticipates diluted net earnings per share to be in the range of $0.73 to $0.77 and adjusted diluted net earnings per share to be in the range of $0.83 to $0.87.
• For the full year 2018, Fortive expects diluted net earnings per share to be in the range of $3.02 to $3.10, which includes anticipated transaction costs related to the Automation & Specialty businesses divestiture and the Advanced Sterilization Products acquisition of $0.05 per share and $0.11 per share for the third quarter and fourth quarter of 2018, respectively.
• For the full year 2018, Fortive expects adjusted diluted net earnings per share to be in the range of $3.42 to $3.50. The updated guidance reflects a full-year $0.08 dilutive impact from the mandatory convertible preferred stock offering which Fortive expects to offset with operational improvements.

Mr. Lico added, “Since last quarter, we announced two acquisitions totaling $3.5 billion and significantly advanced our portfolio enhancement work to accelerate growth and reduce cyclicality. With our strong free cash flow generation and balance sheet, we are well-positioned to continue deploying capital towards M&A. The power of the Fortive Business System coupled with our portfolio transformation positions us well for the remainder of 2018 and beyond.”

GUIDANCE:

Fortive sees FY2018 EPS of $3.42-$3.50, versus the consensus of $3.47.

For earnings history and earnings-related data on Fortive (FTV) click here.

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