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Apr 01, 2022

Fortive Q1 2022 Earnings Report

Reported strong first quarter results and raised full year outlook.

Key Takeaways

Fortive Corporation announced strong first quarter 2022 results, with revenue growth of 9% and core revenue growth of 5%. The company's performance exceeded expectations despite COVID and supply chain challenges. Demand for software-enabled workflow solutions yielded mid-teens software growth. Fortive is raising the low end of its full-year 2022 outlook.

Q1 revenue growth of 9%, 5% core, reflecting continued strong customer demand

Performance exceeded expectations despite continued COVID and supply chain challenges

Demand for software-enabled workflow solutions yielded mid-teens software growth

Raises low end of 2022 outlook: GAAP EPS of $2.07-$2.16, Up 25%-31%, and Adjusted EPS of $3.04-$3.13, Up 11-14%

Total Revenue
$1.38B
Previous year: $1.26B
+9.4%
EPS
$0.7
Previous year: $0.63
+11.1%
Core Revenue Growth
5.3%
Previous year: 9.1%
-41.8%
Gross Profit
$792M
Previous year: $712M
+11.3%
Cash and Equivalents
$684M
Previous year: $1.3B
-47.3%
Free Cash Flow
$196M
Previous year: $144M
+36.5%
Total Assets
$16.3B
Previous year: $14.3B
+13.9%

Fortive

Fortive

Forward Guidance

For the second quarter of 2022, Fortive anticipates revenue of $1.39 billion to $1.43 billion, diluted net earnings per share from continuing operations to be in the range of $0.44 to $0.47 and adjusted diluted net earnings per share from continuing operations to be in the range of $0.70 to $0.73. For the full year 2022, Fortive now anticipates revenue of $5.77 billion to $5.88 billion, diluted net earnings per share from continuing operations to be in the range of $2.07 to $2.16 and adjusted diluted net earnings per share from continuing operations to be in the range of $3.04 to $3.13.

Positive Outlook

  • Revenue of $1.39 billion to $1.43 billion for Q2 2022
  • Q2 2022 diluted net earnings per share from continuing operations to be in the range of $0.44 to $0.47
  • Q2 2022 adjusted diluted net earnings per share from continuing operations to be in the range of $0.70 to $0.73
  • Full year 2022 revenue of $5.77 billion to $5.88 billion
  • Full year 2022 diluted net earnings per share from continuing operations to be in the range of $2.07 to $2.16

Challenges Ahead

  • $40 million of impact to core revenue from Covid-related shutdowns in Shanghai for Q2 2022
  • Supply chain constraints
  • Covid-related lockdowns
  • Uncertainty in economic conditions
  • Contractions or lower growth rates and cyclicality of markets