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Sep 28, 2024
ITT Q3 2024 Earnings Report
Reported strong third quarter with profitable growth and margin expansion, driven by strength across all segments and strategic acquisitions.
Key Takeaways
ITT Inc. reported an 8% increase in revenue (6% organic) and a 46% increase in EPS to $1.96. Adjusted EPS increased by 7% to $1.46. The company is raising the midpoint of its full year EPS guidance due to continued outperformance.
Orders grew by 17% (14% organic) driven by pump project awards, rail share gains, and connectors demand.
Revenue increased by 8% (6% organic) driven by strength across all segments.
Operating margin expanded by 610 basis points to 23.5%, including a $48 million preliminary gain on the divestiture of Wolverine Advanced Materials.
EPS grew by 46% primarily driven by the gain on the Wolverine divestiture; adjusted EPS grew by 7% driven by pricing actions, volume, and productivity.
Revenue by Segment
Forward Guidance
The company is raising its full-year revenue and operating margin guidance above the previous midpoint, while also raising the midpoint of its adjusted EPS outlook despite the incremental interest expense and purchase price amortization from the kSARIA acquisition.
Positive Outlook
- Expect revenue growth of 10% to 12%, up 5% to 7% on an organic basis.
- Expect operating margin of 18.4% to 18.7% and adjusted operating margin of 17.4% to 17.7%, up 50 to 80 bps (up 130 to 160 bps excluding acquisition dilution).
- Expect full year EPS of $6.16 to $6.22
- Expect adjusted EPS of $5.80 to $5.86, up 11% to 12% for the full year.
- Expect free cash flow of ~$450 million, representing ~12% free cash flow margin for the full year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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