Fortive's (FTV) Q2 Earnings and Revenues Beat Estimates

Fortive Corporation FTV reported second-quarter 2020 earnings of 68 cents per share, which outpaced the Zacks Consensus Estimate of 58 cents. The figure decreased 24.4% from the year-ago quarter but increased 8.1% on a sequential basis.

Revenues decreased 15.7% year over year and 8.3% sequentially to $1.57 billion. Also, core revenues declined 16.8% from the year-ago quarter.

However, the top line outpaced the Zacks Consensus Estimate by 2.9%.

Fortive Corporation Price, Consensus and EPS Surprise

Fortive Corporation Price, Consensus and EPS Surprise

Fortive Corporation price-consensus-eps-surprise-chart | Fortive Corporation Quote

Top Line in Detail

Fortive operates under the following two organized segments.

Professional Instrumentation: The segment generated revenues of $1.03 billion (accounting for 66% of total second-quarter revenues), which decreased 11% on a year-over-year basis.

Industrial Technologies: This segment generated revenues of $533.7 million (34% of total revenues), which declined 23.7% from the prior-year quarter.

Operating Details

In the second quarter, gross margin came in at 51.8%, which expanded 330 basis points (bps) year over year.

Total operating expenses were $623.2 million, reflecting a 4.8% year-over-year decrease. As a percentage of revenues, both selling, general & administrative expenses as well as research & development costs increased from the year-ago quarter.

Operating margin was 12.2%, which contracted 120 bps on a year-over-year basis.

Segment wise, operating margin from Professional Instrumentation came in at 13.1%, which expanded 200 bps year over year.

Industrial Technologies operating margins came in at 15.5% versus 20.7% in the year-ago quarter.


Though the company did not provide full guidance for the third quarter, it expects total revenues to decline 5-8% on a year-over-year basis. The projection, however, indicates a sequential improvement.

Zacks Rank & Other Key Picks

Fortive currently has a Zacks Rank #2 (Buy). Other top-ranked stocks in the broader technology sector include Microchip Technology Incorporated MCHP, eBay EBAY and Advanced Micro Devices, Inc. AMD. While Microchip Technology and eBay sport a Zacks Rank #1 (Strong Buy), Advanced Micro carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth for Microchip Technology, eBay, and Advanced Micro is currently projected at 14.5%, 11.7% and 40.3%, respectively.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained an impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.

This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.

See their latest picks free >>

Click to get this free report

eBay Inc. (EBAY): Free Stock Analysis Report

Microchip Technology Incorporated (MCHP): Free Stock Analysis Report

Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report

Fortive Corporation (FTV): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics


Latest Markets Videos


Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

Learn More