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Dec 31, 2022

Fortive Q4 2022 Earnings Report

Reported strong revenue growth, margin expansion, earnings, and cash flow growth.

Key Takeaways

Fortive Corporation reported strong Q4 2022 results, with total and core revenue growth of 11% and 14%, respectively. GAAP EPS was $0.64, and adjusted EPS was $0.88, up 11%. The company anticipates revenue of $1.40 billion to $1.44 billion, diluted net earnings per share from continuing operations of $0.47 to $0.50 and adjusted diluted net earnings per share from continuing operations of $0.71 to $0.74 for the first quarter of 2023.

Delivered significant revenue growth, margin expansion, earnings and cash flow growth in 2022, all above the respective guidance set coming into the year

Q4 total and core revenue growth of 11% and 14% respectively, all segments positively contributing

Q4 GAAP EPS of $0.64; Adjusted EPS of $0.88, up 11%

Operating cash flow of $464 million, up 62% and free cash flow of $428 million, up 62%, demonstrating robust compounding model

Total Revenue
$1.53B
Previous year: $1.38B
+11.3%
EPS
$0.88
Previous year: $0.79
+11.4%
Core Revenue Growth
14%
Previous year: 1%
+1300.0%
Gross Profit
$893M
Previous year: $794M
+12.4%
Cash and Equivalents
$709M
Previous year: $819M
-13.4%
Free Cash Flow
$428M
Previous year: $253M
+69.5%
Total Assets
$15.9B
Previous year: $16.5B
-3.5%

Fortive

Fortive

Forward Guidance

For the first quarter of 2023, Fortive anticipates revenue of $1.40 billion to $1.44 billion, diluted net earnings per share from continuing operations of $0.47 to $0.50 and adjusted diluted net earnings per share from continuing operations of $0.71 to $0.74. For the full year 2023, Fortive anticipates revenue of $5.95 billion to $6.10 billion, diluted net earnings per share from continuing operations of $2.30 to $2.45, and adjusted diluted net earnings per share from continuing operations of $3.25 to $3.40.

Positive Outlook

  • Expect that 2023 will be another year of growth and margin expansion in each of our strategic segments.
  • The strength of our backlog position against normalizing demand gives us confidence in our ability to grow through a decline in hardware products orders in the first half
  • Software businesses continue their strong pace of growth.
  • FBS-driven execution and productivity initiatives.
  • Excellent position to make a real difference for our customers, employees and shareholders despite the economic uncertainty in the year ahead.