Fortive's (FTV) Q3 Earnings Beat Estimates, Revenues Lag
Fortive Corporation FTV reported third-quarter 2020 earnings of 94 cents per share, which outpaced the Zacks Consensus Estimate of 88 cents. The figure increased 8% from the year-ago quarter and 38.2% on a sequential basis.
Revenues increased 2.3% year over year and 21.1% sequentially to $1.90 billion.
However, core revenues declined 0.1% from the year-ago quarter. Also, the top line missed the Zacks Consensus Estimate of $1.92 billion.
Top Line in Detail
Fortive operates under the following two organized segments.
Professional Instrumentation: The segment generated revenues of $1.16 billion (accounting for 61% of total third-quarter revenues), which increased 0.9% on a year-over-year basis.
Industrial Technologies: This segment generated revenues of $746.6 million (39% of total revenues), which increased 4.5% from the prior-year quarter.
Fortive Corporation Price, Consensus and EPS Surprise
In the third quarter, gross margin came in at 51.7%, which expanded 180 basis points (bps) year over year.
Total operating expenses were $673 million, reflecting a 1.8% year-over-year decrease. As a percentage of revenues, both selling, general & administrative expenses as well as research & development costs decreased from the year-ago quarter.
Operating margin was 16.3%, which expanded 330 bps on a year-over-year basis.
Segment wise, operating margin from Professional Instrumentation came in at 14.6%, which expanded 360 bps year over year.
Industrial Technologies operating margins came in at 22.2% versus 19.4% in the year-ago quarter.
Though the company did not provide full guidance for the fourth quarter, it expects total revenues to increase 0-3% on a year-over-year basis. The Zacks Consensus Estimate for revenues is pegged at $1.77 billion.
Zacks Rank & Key Picks
Fortive currently has a Zacks Rank #4 (Sell). Some better-ranked stocks in the broader technology sector include ON Semiconductor Corporation ON, Silicon Laboratories, Inc. SLAB and Alibaba Group Holding Limited BABA, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth for ON Semiconductor, Silicon Laboratories, and Alibaba is currently projected at 1.3%, 15% and 19.4%, respectively.
Zacks’ 2020 Election Stock Report
In addition to the companies you learned about above, we invite you to learn more about profiting from the upcoming presidential election. Trillions of dollars will shift into new market sectors after the votes are tallied, and investors could see significant gains. This report reveals specific stocks that could soar: 6 if Trump wins, 6 if Biden wins.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Silicon Laboratories, Inc. (SLAB): Free Stock Analysis Report
Alibaba Group Holding Limited (BABA): Free Stock Analysis Report
ON Semiconductor Corporation (ON): Free Stock Analysis Report
Fortive Corporation (FTV): Free Stock Analysis Report
To read this article on Zacks.com 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.