ITT Q1 2021 Earnings Report
Key Takeaways
ITT Inc. reported a 5% increase in first-quarter year-over-year sales, with a 2% increase on an organic basis due to strength in its Friction and Connectors businesses. The company's segment operating margin expanded 530 basis points to 17.0%, and adjusted segment operating margin expanded 300 basis points to 17.5%. ITT raised its 2021 guidance for revenue, segment margin, EPS, and free cash flow.
Revenue up 5%, organic revenue up 2% driven by strength in Friction and Connectors
Segment operating margin of 17.0%, up 530 bps, adjusted segment operating margin of 17.5%, up 300 bps; incremental margin over 70%
EPS of $0.99, up 4%; adjusted EPS of $1.06, up 33%
Raising 2021 revenue, segment margin, EPS and free cash flow guidance
ITT
ITT
ITT Revenue by Segment
Forward Guidance
ITT raised its 2021 guidance to reflect the strong first quarter results and a more favorable outlook than initially anticipated for the remainder of 2021.
Positive Outlook
- Revenue growth of 8% to 10%, or up 5% to 7% on an organic basis
- Segment operating margin of 16.8% to 17.3%
- Adjusted segment operating margin of 16.9% to 17.4%, up 170 to 220 bps
- Earnings per share of $3.65 to $3.91
- Adjusted earnings per share of $3.80 to $4.00 per share, up 19% to 25%
Challenges Ahead
- Expect to face certain market headwinds moving forward
- Expect to face certain supply chain headwinds moving forward
Revenue & Expenses
Visualization of income flow from segment revenue to net income