Group 1 - ITT reported revenue of $929 million for the quarter ended December 2024, reflecting a 12.1% increase year-over-year and a surprise of +0.23% over the Zacks Consensus Estimate of $926.84 million [1] - Earnings per share (EPS) for the quarter was $1.50, compared to $1.34 in the same quarter last year, resulting in an EPS surprise of +2.04% against the consensus estimate of $1.47 [1] - ITT's stock has returned +4.6% over the past month, outperforming the Zacks S&P 500 composite's +2.1% change, and currently holds a Zacks Rank 3 (Hold) [3] Group 2 - Motion Technologies (MT) revenue was reported at $326 million, which is -10.6% year-over-year and below the average estimate of $353.21 million [4] - Connect & Control Technologies (CCT) revenue reached $241 million, exceeding the average estimate of $222.69 million, marking a +37.2% year-over-year increase [4] - Industrial Process (IP) revenue was $362.60 million, surpassing the average estimate of $353.10 million, with a +25.2% change compared to the previous year [4] Group 3 - Adjusted Operating Income for Corporate was reported at -$19.70 million, worse than the average estimate of -$14.22 million [4] - Adjusted Operating Income for Connect & Control Technologies (CCT) was $42.10 million, exceeding the average estimate of $38.53 million [4] - Adjusted Operating Income for Motion Technologies (MT) was $62.90 million, below the average estimate of $66.44 million, while Industrial Process (IP) reported $77.50 million, above the average estimate of $72.21 million [4]

ITT (ITT) Q4 2024 Earnings Call February 06, 2025 09:30 AM ET Company Participants Mark Macaluso - Vice President of Investor Relations & Global CommunicationsLuca Savi - CEO and PresidentEmmanuel Caprais - Senior VP & CFOMichael Halloran - Associate Director of ResearchJeffrey Hammond - Managing DirectorScott Davis - CEO & ChairmanDamian Karas - Executive DirectorNathan Jones - Managing DirectorJoseph Giordano - Managing DirectorBrad Hewitt - VP - Equity Research Conference Call Participants Joseph Ritchie ...

Group 1: Earnings Performance - ITT reported quarterly earnings of $1.50 per share, exceeding the Zacks Consensus Estimate of $1.47 per share, and up from $1.34 per share a year ago, representing an earnings surprise of 2.04% [1] - The company posted revenues of $929 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.23%, compared to year-ago revenues of $829.1 million [2] - Over the last four quarters, ITT has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - ITT shares have increased approximately 4.7% since the beginning of the year, outperforming the S&P 500's gain of 3.1% [3] - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the coming quarter is $1.48 on revenues of $953.52 million, and for the current fiscal year, it is $6.48 on revenues of $3.82 billion [7] Group 3: Industry Context - The Zacks Industry Rank indicates that the Diversified Operations sector is currently in the bottom 36% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5][6]

Financial Performance - ITT reported Q4 2024 EPS of $1.55, a 38% increase year-over-year, and full year EPS of $6.30, up 26.8% from the previous year[1][4][15]. - Q4 2024 revenue reached $929 million, reflecting a 12% year-over-year increase, with organic growth of 6% driven by higher volume and pricing actions[2][6][15]. - Operating income for Q4 2024 was $160 million, a 35% increase compared to the prior year, resulting in an operating margin of 17.2%, up 290 basis points[3][6][15]. - Full year revenue for 2024 was $3.63 billion, a 10.6% increase, with an organic growth rate of 6.9%[15]. - Gross profit for the year ended December 31, 2024, was $1,247.3 million, up 12.7% from $1,107.3 million in 2023[26]. - Operating income for the twelve months ended December 31, 2024, increased to $676.0 million, representing a 28.0% rise from $528.2 million in 2023[26]. - Net income attributable to ITT Inc. for the year was $518.3 million, a 26.3% increase compared to $410.5 million in 2023[26]. - Total Revenue for Q4 2024 is $326.0 million, with a full year total of $3,630.7 million, showing a reported revenue growth of 10.6%[36]. - Organic Revenue for 2024 is $836.6 million, with a year-over-year growth of 6.9%[36]. - Total Orders for Q4 2024 amount to $914.8 million, with a full year total of $3,785.7 million, reflecting an overall growth of 9.7%[37]. - The company experienced a reported revenue decline of 10.6% in the MT segment, while the IP segment grew by 25.2%[36]. - The CCT segment reported a revenue growth of 37.2%, contributing significantly to the overall performance[36]. Cash Flow and Capital Management - Operating cash flow for Q4 2024 was $223 million, a 31% increase year-over-year, with a free cash flow of $187 million, up 42%[5][6]. - The company deployed $1.2 billion in capital, more than double the full year free cash flow, focusing on high growth and high margin segments[5][9]. - The company generated $562.6 million in net cash from operating activities for the year, compared to $538.0 million in 2023[29]. - Free Cash Flow for the year is defined as net cash from operating activities minus capital expenditures, providing insight into cash flow management[34]. - Free cash flow for FY 2024 is projected at $438.7 million, with a free cash flow margin of 12.1%[54]. - The company reported a net cash from operating activities of $223.2 million for Q4 2024, up from $170.4 million in Q4 2023[54]. Guidance and Future Outlook - ITT initiated 2025 EPS guidance of $6.05 to $6.45, with adjusted EPS guidance of $6.10 to $6.50[5][17]. - The company expects 2025 revenue growth of 2% to 4%, with an operating margin of 18.0% to 18.9%[17]. - The company anticipates capital expenditures of $125 million for FY 2025[54]. - Full year 2025 guidance for EPS from continuing operations (GAAP) is projected between $6.05 and $6.45, with adjusted EPS expected between $6.10 and $6.50[49]. Dividends and Shareholder Returns - The company announced a 10% increase in its quarterly dividend to $0.351 per share, continuing a trend of annual dividend growth[16]. Assets and Liabilities - Cash and cash equivalents at the end of 2024 were $440.0 million, down from $489.9 million at the end of 2023[29]. - Total assets increased to $4,710.7 million in 2024, compared to $3,932.6 million in 2023, reflecting a growth of 19.7%[28]. - Total liabilities rose to $1,941.1 million in 2024, up from $1,393.5 million in 2023, marking a 39.4% increase[28]. Research and Development - Research and development expenses for the year were $116.3 million, an increase from $102.6 million in 2023[26]. Special Items and Adjustments - The impact of special item adjustments on Operating Margin for Full Year 2024 was -310 basis points[39]. - Adjusted Operating Margin for Full Year 2024 was 18.6%, reflecting a change of 590 basis points from the previous year[39]. - Q4 2024 tax benefits include valuation allowance impacts of ($8.9 million) and undistributed foreign earnings of $7.6 million, with total tax expenses for the full year 2024 amounting to $12.5 million[47]. Strategic Initiatives - The company plans to focus on market expansion and new product development to drive future growth[36]. - Strategic acquisitions and divestitures are being evaluated to enhance operational efficiency and market presence[37]. - The company experienced a divestiture of Wolverine in Q3 2024 and Matrix in Q4 2023, impacting financial results[46].

Group 1 - ITT is expected to report quarterly earnings of $1.47 per share, reflecting a year-over-year increase of 9.7% [1] - Revenues are projected to be $926.84 million, which represents an 11.8% increase from the same quarter last year [1] - There has been a 1% upward revision in the consensus EPS estimate over the past 30 days, indicating analysts have reappraised their projections [1] Group 2 - The consensus estimate for 'Revenue- Motion Technologies (MT)' is $353.21 million, indicating a year-over-year decrease of 3.2% [3] - 'Revenue- Connect & Control Technologies (CCT)' is estimated at $222.69 million, showing a year-over-year increase of 26.8% [4] - 'Revenue- Industrial Process (IP)' is projected to be $353.10 million, reflecting a year-over-year increase of 21.9% [4] Group 3 - 'Adjusted Operating Income- Connect & Control Technologies (CCT)' is forecasted to reach $38.53 million, up from $33.40 million in the same quarter last year [5] - 'Adjusted Operating Income- Motion Technologies (MT)' is expected to be $66.44 million, compared to $62.30 million in the previous year [5] - 'Adjusted Operating Income- Industrial Process (IP)' is estimated at $72.21 million, an increase from $60.40 million a year ago [6] Group 4 - Over the past month, ITT shares have returned +3.7%, outperforming the Zacks S&P 500 composite's +1.7% change [6] - ITT currently holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [6]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for ITT, with a focus on how actual results compare to estimates, which could significantly impact stock price [1][2]. Earnings Expectations - ITT is expected to report quarterly earnings of $1.46 per share, reflecting a +9% change year-over-year, with revenues projected at $927.16 million, an increase of 11.8% from the previous year [3]. - The consensus EPS estimate has been revised 0.68% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for ITT is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +0.80%, indicating a bullish outlook [10]. - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3, which increases the likelihood of a positive surprise to nearly 70% [8]. Historical Performance - In the last reported quarter, ITT exceeded the expected earnings of $1.43 per share by delivering $1.46, resulting in a surprise of +2.10% [12]. - Over the past four quarters, ITT has beaten consensus EPS estimates three times, showcasing a consistent ability to exceed expectations [13]. Conclusion - ITT is positioned as a compelling candidate for an earnings beat, but investors should consider other influencing factors beyond earnings results when making investment decisions [16].

Group 1: Company Performance and Segments - ITT Inc. is experiencing growth across its segments, particularly in the Industrial Process (IP) segment due to strong performance in pump projects and Habonim valves business [1] - The Connect and Control Technologies (CCT) segment is benefiting from increased sales in aerospace and defense markets, supported by acquisitions of kSARIA and Micro-Mode [2] - The Motion Technologies (MT) segment is seeing strong demand for brake components and specialized sealing solutions, which is expected to enhance its performance in the upcoming quarters [2] Group 2: Acquisitions and Expansion - ITT has focused on acquisitions for business expansion, including the acquisition of kSARIA Parent, Inc. in September 2024, which strengthened its connectivity solutions for defense and aerospace [3] - The acquisition of Svanehøj Group A/S for approximately $395 million in January 2024 expanded ITT's offerings in the marine pumps market [3] - The acquisition of Micro-Mode Products, Inc. in May 2023 enhanced ITT's product portfolio and customer base, particularly for long-term defense programs [3] Group 3: Financial Performance and Shareholder Policies - In the first nine months of 2024, ITT paid out dividends of $78.7 million, a 9.5% increase year over year, and repurchased shares worth $104 million, up 73% year over year [4] - The company's total dividend payments in 2023 were $95.8 million, with share repurchases amounting to $60 million [4] - A quarterly dividend rate increase of 10% was announced in February 2024 [4] Group 4: Market Position and Stock Performance - ITT's shares have gained 25% over the past year, significantly outperforming the industry, which saw a decline of 4.4% [5]

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? ITT (ITT) , which belongs to the Zacks Diversified Operations industry, could be a great candidate to consider.When looking at the last two reports, this supplier of parts and services to a wide variety of industries has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 2.08%, on average, in the last two qua ...

It’s difficult to fault ITT Inc.’s (NYSE: ITT ) execution over the last couple of years, as the company has skillfully navigated challenging conditions in many short-cycle markets and inconsistent volumes in autos to deliver above-peer revenue growth forAnalyst’s Disclosure: I/we have a beneficial long position in the shares of ITT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than f ...

ITT Inc. (ITT) is well-poised for growth in the coming quarters, courtesy of strength across its segments and strong operational execution. The company's efforts to reward its shareholders handsomely add to its appeal.Based in New York, ITT is a global leader in multiple high-technology engineering and manufacturing industries. It engages in the design, manufacture and sale of a wide range of engineered products and services.ITT currently carries a Zacks Rank #3 (Hold). In the past year, the stock has gaine ...