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Jul 01, 2022

Fortive Q2 2022 Earnings Report

Announced strong financial results for the second quarter, driven by robust execution and demand for workflow solutions.

Key Takeaways

Fortive Corporation reported strong second-quarter results, exceeding expectations with 11% revenue growth and a 9% core revenue increase. The company's adjusted earnings per share rose by 18%, driven by margin expansion and cash flow generation. Fortive narrowed its full-year revenue growth outlook to 10-11% and raised its core growth outlook to 8-9.5%.

Delivered outstanding financial performance despite continued COVID, supply chain and foreign exchange headwinds

Q2 revenue growth of 11%, up 9% core, ahead of expectations, reflects effective mitigation of expected Shanghai lockdown impact

Continued demand for workflow solutions yields high single-digit hardware orders and software annual recurring revenue growth in Q2

Flat Q2 GAAP diluted net earnings per share, up 18% adjusted diluted earnings per share

Total Revenue
$1.46B
Previous year: $1.32B
+10.8%
EPS
$0.78
Previous year: $0.66
+18.2%
Core Revenue Growth
9%
Previous year: 21.3%
-57.7%
Gross Profit
$834M
Previous year: $756M
+10.3%
Cash and Equivalents
$683M
Previous year: $1.57B
-56.4%
Free Cash Flow
$276M
Previous year: $271M
+2.0%
Total Assets
$16.1B
Previous year: $14.5B
+10.9%

Fortive

Fortive

Forward Guidance

For the third quarter of 2022, Fortive anticipates revenue of $1.43 billion to $1.46 billion, diluted net earnings per share from continuing operations to be in the range of $0.49 to $0.53 and adjusted diluted net earnings per share from continuing operations to be in the range of $0.74 to $0.77. For the full year 2022, Fortive narrows its revenue outlook to $5.78 billion to $5.83 billion, raising core growth at the midpoint, with anticipated full year diluted net earnings per share from continuing operations to be in the range of $2.03 to $2.09 and adjusted diluted net earnings per share from continuing operations to be in the range of $3.07 to $3.13, tightening the ranges previously provided on its first quarter earnings call.