Loading...
•
Dec 31, 2022
ITT Q4 2022 Earnings Report
ITT's Q4 2022 performance was driven by pricing recovery and higher volume, resulting in strong revenue and EPS growth.
Key Takeaways
ITT Inc. reported a 13% year-over-year revenue increase in Q4 2022, with a 17% increase on an organic basis. EPS increased by 16% to $1.39, and adjusted EPS increased by 22% to $1.29. The company overcame cost inflation and foreign currency headwinds to deliver on its original revenue and adjusted EPS guidance.
Revenue increased by 13% (17% organic) due to pricing recovery and higher volume.
Orders grew by 8% (12% organic), driven by connectors, aerospace and defense components, and pump projects.
EPS increased by 16% (22% adjusted) due to price recovery, productivity, and the Habonim contribution.
The company initiated 2023 EPS guidance up 4% at the midpoint (adjusted EPS up 7% at the midpoint).
Revenue by Segment
Forward Guidance
ITT expects revenue growth of 7% to 9%, up 6% to 8% on an organic basis; segment operating margin of 17.0% to 17.8%, and adjusted segment operating margin of 17.3% to 18.1%, up 10 to 90 bps; EPS of $4.38 to $4.78, and adjusted EPS of $4.55 to $4.95, representing growth of 7% at the midpoint; and free cash flow of $350 million to $400 million, representing free cash flow margin of 11% to 12% for the full year 2023.
Positive Outlook
- Revenue growth of 7% to 9%
- Organic revenue growth of 6% to 8%
- Segment operating margin of 17.0% to 17.8%
- Adjusted segment operating margin of 17.3% to 18.1%
- Free cash flow of $350 million to $400 million
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
Loading earnings performance data...
Loading earnings reaction data...