Post Earnings Coverage as Fortive Core Revenue Increased 3.5%

Upcoming AWS Coverage on Garmin Post-Earnings Results

LONDON, UK / ACCESSWIRE / February 27, 2017 / Active Wall St. announces its post-earnings coverage on Fortive Corp. (NYSE: FTV). The Company announced its fourth quarter and fiscal 2016 financial results on February 07, 2017. Prior to July 02, 2016, Fortive operated as part of Danaher Corporation and the historical financial measures presented in the financial results prior to July 02, 2016, were derived from Danaher’s accounting records and presented on a carved-out basis. Register with us now for your free membership at:

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One of Fortive’s competitors within the Scientific & Technical Instruments space, Garmin Ltd. (NASDAQ: GRMN), reported its Q4 2016 earnings results on Wednesday, February 22, 2017. AWS will be initiating a research report on Garmin in the coming days.

Today, AWS is promoting its earnings coverage on FTV; touching on GRMN. Get our free coverage by signing up to:

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Earnings Reviewed

For the quarter ended December 31, 2016, Fortive reported that GAAP revenues increased 3.3% y-o-y to $1.6 billion, with core revenue growth of 3.5%.

For Q4 2016, Fortive’s net earnings were $224.5 million. For the same period, non-GAAP adjusted net earnings were $237.7 million. Diluted net earnings per share for Q4 2016 were $0.64, while non-GAAP adjusted diluted net earnings per share were $0.68.

James A. Lico, President and Chief Executive Officer, stated:

“We are pleased with our fourth quarter results as the team leveraged the power of the Fortive Business System to once again deliver core sales growth, cash flow generation, and earnings outperformance. We ended the year well-positioned for expected continued growth around the world and across our diverse businesses.”

Operating Metrics

During Q4 2016, Fortive’s operating profit margin was 20.8%, which reflects core adjusted operating margin expansion of 20 basis points. During the reported quarter, the Company generated approximately $278 million of free cash flow and delivered conversion ratio of 124%. For FY16, free cash flow conversion was 115%.

Segment Results

During Q4 2016, Fortive’s Professional Instrumentation posted core revenue growth of 1.2%, an acceleration of almost 50 basis points over Q3 2016, reflecting continued stabilization in North American industrial markets. FX was a significant headwind in the reported quarter, of approximately 130 basis points, which was partially offset by growth from acquisitions of 40 basis points. Professional Instrumentation’s operating profit margin was 23.1% in Q4 2016, reflecting a core operating margin decline of 30 basis points, driven primarily by long-term growth investments undertaken in the quarter, which was partially offset by decreased amortization.

Advanced Instrumentation & Solutions’ core revenue increased low single-digits, primarily led by good performance in both Fluke and Qualitrol, which comprise its Field Solutions platform. Field Solutions core revenue was up low single-digits in the reported quarter, with Fluke and Qualitrol posting low single-digit and high single-digit growth respectively.

For Q4 2016, Fortive’s Tektronix reported low single-digit core revenue growth, reflecting continued outperformance in China of high double-digits stabilization and developed markets. The Company’s Sensing Technologies platform posted high single-digit core growth in the reported quarter.

For its Industrial Technology segment, Fortive realized core revenue growth of 5.6% in Q4 2016. Acquisitions contributed approximately 130 basis points of growth, relative to prior year, which was partially offset by 100 basis points of unfavorable currency translation. The segment’s reported operating profit margin increased to 20.7%, and core operating margin was up 80 basis points for the quarter, reflecting margin expansion across all platforms.

Outlook

For Q1 2017, Fortive anticipates diluted net earnings per share to be in the range of $0.51 to $0.55 and the non-GAAP adjusted diluted net earnings per share to be in the range of $0.54 to $0.58. Fortive expects FY17 diluted net earnings per share to be in the range of $2.48 to $2.58 and non-GAAP adjusted diluted net earnings per share to be in the range of $2.60 to $2.70.

Stock Performance

On Friday, February 24, 2017, the stock closed the trading session at $57.79, slightly rising 0.93% from its previous closing price of $57.26. A total volume of 1.84 million shares have exchanged hands, which was higher than the 3-month average volume of 1.60 million shares. Fortive’s stock price advanced 4.88% in the last month, 4.50% in the past three months, and 12.78% in the previous six months. Furthermore, since the start of the year, shares of the Company have gained 7.89%. The stock is trading at a PE ratio of 23.00 and has a dividend yield of 0.48%.

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