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Dec 31, 2020
ITT Q4 2020 Earnings Report
ITT demonstrated resilience and benefited from actions taken to address the challenges of the global pandemic.
Key Takeaways
ITT Inc. reported a fourth quarter year-over-year sales decline of 2%, down 4% on an organic basis. Segment operating margin for the fourth quarter of 16.9% expanded 200 basis points and adjusted segment operating margin expanded 150 basis points. Earnings per share was a loss of $0.16, but adjusted earnings per share increased 2% to $1.01 versus prior year despite the sales decline.
Delivered 200 basis points improvement in segment operating margin, 150 basis points improvement in adjusted segment operating margin
Motion Technologies grew 10% on an organic basis, with over 400 basis points of adjusted margin expansion fueled by growth in our Friction business.
Adjusted segment margins in Industrial Process expanded 90 basis points driven by productivity and cost controls.
Announced a 30% increase in quarterly dividend to $0.22 per share
Revenue by Segment
Forward Guidance
The company’s 2021 guidance assumes limited further disruption from the COVID-19 global pandemic, which significantly impacted 2020 performance, and continued improvement in global economic activity, particularly in the second half of 2021.
Positive Outlook
- We expect revenue growth of 5% to 7%, or up 2% to 4% on an organic basis
- Segment operating margin of 15.5% to 16.0%, and adjusted segment operating margin range of 16.5% to 17.0%, up 130 to 180 bps
- Earnings per share of $3.12 to $3.48
- Adjusted earnings per share of $3.45 to $3.75 per share, up 8% to 17%
- Free cash flow of $270 million to $300 million, representing free cash flow margin of 10% to 12% 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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