Anticipated Performance Metrics
Fortive Corporation FTV is all set to reveal its first-quarter 2024 results on Apr 24. Management projects total revenues to fall within the $1.515-$1.540 billion range. The Zacks Consensus Estimate stands at $1.53 billion, reflecting a 4.5% surge from a year ago.
Non-GAAP earnings per share (EPS) are projected in the 77-80 cents corridor. The consensus estimate lands at 79 cents, signifying a 5.3% increase compared to the previous year’s reported figure.
Recent Performance Trends
The company boasts a trailing four-quarter earnings surprise average of 2.98%. Fortive’s shares have soared by 20.9% in the past year, outshining the sub-industry’s growth of 11%.
Key Drivers to Observe
Fortive’s top-line growth is expected to be propelled by robust customer demand across various regions, particularly the ongoing robustness in software and recurring revenue facets. An unwavering focus on enhancing the Fortive Business System to foster innovation stands as a promising catalyst.
New product introductions and synergies from strategic acquisitions play a crucial role in driving revenue growth. Notably, management previously highlighted a 33% uptick in revenue attainment from new product launches in 2023.
The Intelligent Operating Solutions segment is likely to have an impressive performance driven by sustained demand and new software offerings. Meanwhile, the Precision Technologies segment is anticipated to witness revenue upticks, fueled by vibrant activities in power, food & beverages, and aerospace and defense markets. The Advanced Healthcare Solutions business is capitalizing on various growth drivers including price realization, new customer acquisitions, and increased uptake of SaaS solutions.
Despite these positive aspects, weakness in Industrial OEM and normalization of demand in China could pose challenges for the Precision Technologies segment. On a global scale, macroeconomic uncertainties coupled with a leveraged balance sheet raise concerns.
Analyst Predictions
According to our model, Fortive is not likely to surpass earnings expectations this time around. Achieving a higher Earnings ESP in combination with a Zacks Rank of #1 (Strong Buy), 2 (Buy), or 3 (Hold) usually elevates the odds of an earnings beat.
As Fortive has an Earnings ESP of -0.42% and currently holds a Zacks Rank #2, the possibility of an earnings beat seems subdued.
Potential Investment Opportunities
Considering the current scenario, here are a few promising stocks that exhibit a favorable combination of elements to potentially outperform earnings estimates this season.
Meta Platforms (META) has an Earnings ESP of +0.62% alongside a Zacks Rank #2. Expected to announce quarterly results on Apr 24, META’s recent months have witnessed a remarkable 135.5% increase in shares.
IMAX Corporation (IMAX) is another stock to watch with an Earnings ESP of +56.00% and a Zacks Rank #2. IMAX is scheduled to release earnings data on Apr 25.
Lastly, SEI Investments Company (SEIC) is a prospective player with an Earnings ESP of +2.50% and a Zacks Rank #1. SEIC is gearing up to disclose quarterly figures on Apr 24.
Stay informed about upcoming earnings announcements through the Zacks Earnings Calendar.
