Fortive (FTV) Tops Q4 EPS by 6c, Revenues Beat; Offers Q1 & FY20 EPS Guidance Below Consensus

Fortive (NYSE: FTV) reported Q4 EPS of $1.03, $0.06 better than the analyst estimate of $0.97. Revenue for the quarter came in at $2 billion versus the consensus estimate of $1.96 billion.

James A. Lico, President and Chief Executive Officer, stated, “Our results for the fourth quarter of 2019 represented a strong conclusion to the year, with 13% earnings growth and strong adjusted operating margin performance. Our free cash flow was particularly notable as we generated over $450M in the quarter, a 17% year-over-year increase and a conversion ratio of more than 120% of adjusted net income. Our ability to generate such strong free cash flow in the face of the continued impact of slow demand dynamics across our short-cycle businesses is a testament to the quality of our portfolio, the dedication of our team, and the power of the Fortive Business System.”

Mr. Lico added, “We are moving toward the completion of the separation of Vontier, after announcing key members of the senior management team, launching the brand, and making progress against other significant milestones over the past few months. We look forward to completing the transaction later this year, and positioning both companies to take full advantage of their respective growth opportunities and capital allocation priorities.”

GUIDANCE:

Fortive sees Q1 2020 EPS of $0.70-$0.74, versus the consensus of $0.79.

Fortive sees FY2020 EPS of $3.68-$3.78, versus the consensus of $3.79.

For the first quarter of 2020, Fortive anticipates diluted net earnings per share from continuing operations to be in the range of $0.24 to $0.28. Fortive anticipates adjusted diluted net earnings per share from continuing operations to be in the range of $0.70 to $0.74. For the full year 2020, Fortive expects diluted net earnings per share from continuing operations to be in the range of $2.16 to $2.26. For the full year 2020, Fortive expects adjusted diluted net earnings per share from continuing operations to be in the range of $3.68 to $3.78. The foregoing anticipated results do not give effect to the pending Vontier separation.

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

You May Also Be Interested In

• Broadcom (AVGO) Tops Q2 EPS by 5c, Offers Guidance
• Five Below (FIVE) Tops Q1 EPS by 53c, Beats on Revenue; Offers FY27 Guidance
• Netskope, Inc. (NTSK) Tops Q1 EPS by 1c, Offers Guidance