Earnings Review and Free Research Report: ITT’s Net Income Surged 50%; Beat Expectations

Research Desk Line-up: Tecogen Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 24, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on ITT Inc. (NYSE: ITT), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=ITT, following the Company’s disclosure of its second quarter fiscal 2017 financial results on August 04, 2017. The supplier of parts and services to a wide variety of industries exceeded revenue estimates and raised revenue and midpoint of adjusted EPS forecast for fiscal 2017. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

http://protraderdaily.com/register/

Get more of our free earnings reports coverage from other constituents of the Diversified Machinery industry. Pro-TD has currently selected Tecogen Inc. (NASDAQ: TGEN) for due-diligence and potential coverage as the Company reported on August 14, 2017, its financial results for Q2 2017 which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Tecogen when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on ITT; also brushing on TGEN. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=ITT

http://protraderdaily.com/optin/?symbol=TGEN

Earnings Reviewed

On a GAAP basis, ITT delivered revenue of $630.9 million, up 1% compared to revenue of $626.2 million in Q2 2016, reflecting benefits from the Axtone Rail Components’ acquisition. The Company’s revenue numbers exceeded analysts’ estimates of $627 million.

ITT’s organic revenue decreased 2% on a y-o-y basis as growth in transportation, driven by automotive, was more than offset by lower industrial and global oil and gas pump project activity. The Company’s organic orders grew 1%, driven by strong automotive share gains in Europe and China, strength in short-cycle pumps, and connector gains across key end-markets.

For Q2 2017, ITT’s operating income totaled $57.7 million compared to operating income of $49.5 million in Q2 2016.

ITT reported GAAP net income of $47.8 million, or $0.54 per diluted share, compared to net income of $32.8 million, or $0.36 per diluted share, in Q2 2016. The Company’s adjusted EPS, which excludes special items, decreased $0.02 on a y-o-y basis to $0.65 as a lower tax rate, interest expense, and share count were more than offset by higher environmental costs as well as unfavorable foreign exchange. Excluding foreign exchange, adjusted EPS grew 6% on a y-o-y basis. ITT’s earnings exceeded Wall Street’s estimates of $0.63 per share.

Business Segment Results

During Q2 2017, ITT’s industrial Process designs segment’s total revenue and organic revenue decreased 10% to $192 million, reflecting project declines, primarily due to lower oil and gas projects in North America, Asia, and Latin America, as well as short-cycle declines in baseline oil and gas pumps and chemical valves. The division’s GAAP operating income soared 135% to $15 million, the increase reflecting prior-year trade name impairment and lower restructuring costs in the current year, while adjusted segment’s operating income decreased 38% to $15 million.

For Q2 2017, ITT’s Motion Technologies unit’s total revenue advanced 12% to $290 million, and organic revenue increased 5%, reflecting share gains and market growth in automotive brake pads in Europe and China and strength in sealing solutions at Wolverine. The segment’s total revenue included $5 million of unfavorable foreign exchange and incremental revenue of $22 million from the acquisition of Axtone.

Motion Technologies’ GAAP operating income grew 7% to $52 million, and adjusted segment operating income increased 6% to $53 million. Both increases reflect strong volume growth, increased productivity and benefits from the acquisition of Axtone, partially offset by commodity costs, pricing pressures, strategic investments, and $5 million of unfavorable foreign exchange. Excluding foreign exchange, adjusted segment’s operating income increased 15% on a y-o-y basis.

For Q2 2017, ITT’s Connect and Control Technologies division’s total revenue dropped 3% to $150 million and organic revenue fell 2%. The revenue decreases reflect lower wide-body platform demand in commercial aerospace and impacts from restrictions on sales of certain military-specification connectors. The segment’s GAAP operating income declined 19% to $14 million, attributed to a legal accrual and higher restructuring costs, and adjusted segment’s operating income increased 14% to $21 million. Excluding foreign exchange, adjusted segment’s operating income increased 20% on a y-o-y basis.

Dividend Declared

On August 10, 2017, ITT’s Board of Directors declared a third-quarter cash dividend of $0.128 per share on the Company’s outstanding stock. The cash dividend will be payable on October 02, 2017, to shareholders of record as of the close of business on September 11, 2017.

Guidance

ITT raised its previously announced FY17 revenue guidance to the range of flat to up 2%. In addition, the Company increased the midpoint of its previously announced adjusted EPS guidance by $0.07 to $2.45. The new adjusted EPS range is now $2.40 to $2.50. The new adjusted EPS midpoint of $2.45 represents a 6% increase on a y-o-y basis, or an 8% growth excluding foreign exchange.

Stock Performance

ITT Inc.’s share price finished yesterday’s trading session at $39.33, dropping slightly by 0.96%. A total volume of 219.68 thousand shares have exchanged hands. The Company’s stock price rallied 0.85% in the last three months and 8.98% in the previous twelve months. Additionally, the stock gained 1.97% since the start of the year. Shares of the Company have a PE ratio of 17.06 and have a dividend yield of 1.30%. The stock currently has a market cap of $3.49 billion.

Pro-Trader Daily:

Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third party research service company (the “Reviewer”) represented by a credentialed financial analyst [for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charter holder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you’re a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: contact@protraderdaily.com

Phone number: (917) 341.4653

Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Pro-Trader Daily

ReleaseID: 473626