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Mar 31, 2021
ITT Q1 2021 Earnings Report
ITT had strong first-quarter due to strength in Friction and Connectors which led to raised 2021 guidance.
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
Revenue by Segment
Motion Technologies Revenue
CapyFin.comIndustrial Process Revenue
CapyFin.comConnect & Control Technologies Revenue
CapyFin.com 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