ITT Inc. (ITT) ITT is benefiting from strength across its segments. The IP segment is gaining from growth in pump projects in the energy, mining and decarbonization markets. Strength in the general industrial end market is aiding the segment's aftermarket business. The acquisition of Svanehøj also bodes well for the segment. Growth in component and connector sales within the aerospace and defense markets is aiding the CCT segment. The acquisition of Micro Mode augurs well for the segment. Solid momentum in ...

11 blackred Investment Thesis ITT Inc. (NYSE:ITT) has good revenue and margin growth prospects moving forward. Despite the tough macroeconomic environment, the company's revenue growth is expected to benefit from continued market share gain in the Motion Technology business, the decarbonization megatrend helping the Industrial Process segment, and the Connect and Control Technologies segment benefiting from strong demand in the Aerospace end market driven by healthy air travel demand (commercial aerospace) ...

ITT Inc.'s (ITT) second-quarter 2024 adjusted earnings of $1.49 per share surpassed the Zacks Consensus Estimate of $1.46. The bottom line jumped 12% year over year, aided by an increase in sales across each of its segments. Total revenues of $905.9 million narrowly missed the consensus estimate of $907 million. However, the top line increased 8.6% year over year, buoyed by higher friction original equipment volume and aftermarket demand in the Motion Technologies segment. Also, short cycle demand in the In ...

Financial Data and Key Metrics Changes - The company reported a 9% revenue growth compared to Q2 2023, driven by higher volumes across all segments and the acquisition of Svanehoj, which contributed 4 percentage points to growth [5][20] - Adjusted EPS grew by 12% to a record $1.49, with significant acceleration in free cash flow [4][20] - The company achieved a 100 basis point margin expansion to 18%, with Motion Technologies and CCT reaching margins close to 19% [6][19] Business Line Data and Key Metrics Changes - CCT experienced double-digit organic growth, driven by industrial connectors and aerospace and defense components, with connectors growing 14% [5][18] - Motion Technologies grew 6% organically, with Friction outperforming by over 600 basis points [6][18] - IP orders were up slightly due to Svanehoj, with legacy pump project orders increasing by 9% sequentially [11][18] Market Data and Key Metrics Changes - The company noted strong performances in aerospace and defense, Friction, and industrial connectors, with significant growth in China [4][6] - The automotive segment is expected to represent only 30% of the total ITT portfolio following recent divestitures [8] Company Strategy and Development Direction - The company is focused on reshaping its portfolio towards higher growth and higher-margin businesses, as evidenced by the acquisition of kSARIA and the divestiture of non-core automotive operations [7][8][15] - The acquisition of kSARIA is expected to enhance ITT's position in the defense and aerospace markets, with a strong growth outlook supported by leading positions on sought-after A&D programs [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance despite the impact of the Wolverine divestiture, citing strong performance in Q2 [9][20] - The company anticipates continued organic revenue growth in the mid-single-digit range across all segments for the third quarter [24] Other Important Information - The company announced the acquisition of kSARIA for approximately $475 million, which is expected to close by the end of September [7][16] - The company repurchased $79 million of its shares and paid down nearly $40 million of debt in Q2 [17] Q&A Session Summary Question: Can you elaborate on the kSARIA deal and its fit with the existing A&D interconnection business? - Management highlighted the strategic fit of kSARIA with ITT's existing capabilities and the strong relationship built over time, indicating that kSARIA's operations are well-run and aligned with ITT's standards [29][30] Question: What are the growth expectations for kSARIA? - The company expects kSARIA to achieve high single-digit growth over the next three to four years, reflecting a more realistic outlook compared to its historical growth rates [53] Question: What is the revenue base for Wolverine? - Wolverine's revenue is approximately $160 million on a yearly basis [52] Question: How is the aerospace supply chain performing? - Management noted improvements in supplier management and on-time delivery, although end customer demand remains volatile [81]

Core Insights - ITT reported revenue of $905.9 million for the quarter ended June 2024, reflecting an 8.6% increase year-over-year, with EPS at $1.49 compared to $1.33 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate by 0.13%, while the EPS exceeded the consensus estimate by 2.05% [1] Revenue Performance - Motion Technologies revenue was $384.50 million, slightly below the estimated $386.34 million, marking a 4.3% increase year-over-year [3] - Intersegment eliminations reported revenue of -$1.10 million, worse than the estimated -$0.98 million, but showing a significant year-over-year change of 57.1% [4] - Connect & Control Technologies revenue reached $191.80 million, surpassing the estimated $185.96 million, with an 11.4% year-over-year increase [5] - Industrial Process revenue was $330.70 million, below the estimated $337.79 million, reflecting a 12.6% year-over-year increase [6] Operating Income - Non-GAAP operating income for Corporate costs and Other was -$13.40 million, better than the estimated -$15.62 million [7] - Non-GAAP operating income for Connect & Control Technologies was $36.10 million, exceeding the estimated $34.67 million [7] - Non-GAAP operating income for Motion Technologies was $72.40 million, above the estimated $70.22 million [8] - Non-GAAP operating income for Industrial Process was $68.10 million, below the estimated $71.18 million [9] Stock Performance - ITT shares have returned +10.7% over the past month, outperforming the Zacks S&P 500 composite's +1.1% change [10] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [10]

Company Performance - ITT reported quarterly earnings of $1.49 per share, exceeding the Zacks Consensus Estimate of $1.46 per share, and up from $1.33 per share a year ago, representing an earnings surprise of 2.05% [1] - The company posted revenues of $905.9 million for the quarter ended June 2024, slightly missing the Zacks Consensus Estimate by 0.13%, but up from $833.9 million year-over-year [2] - Over the last four quarters, ITT has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Performance - ITT shares have increased approximately 18.6% since the beginning of the year, outperforming the S&P 500's gain of 15.8% [3] - The current Zacks Rank for ITT is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.45 on revenues of $900.48 million, and for the current fiscal year, it is $5.85 on revenues of $3.63 billion [7] - The outlook for the industry, specifically the Zacks Diversified Operations industry, is favorable, ranking in the top 16% of over 250 Zacks industries, which historically outperforms the bottom 50% by more than 2 to 1 [8]

Based on the collective assessment of analysts, 'Operating income (Non gaap)- Industrial Process' should arrive at $71.18 million. Compared to the present estimate, the company reported $67.10 million in the same quarter last year. The consensus EPS estimate for the quarter has undergone an upward revision of 0.2% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe. While investors usually ...

Carlisle Companies Incorporated (CSL) presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 17%. The consensus estimate for CSL's 2024 earnings has increased 2.2% in the past 60 days. Shares of Carlisle have risen 57.9% in the past year. Griffon Corporation (GFF) presently carries a Zacks Rank of 2. It delivered a trailing four-quarter average earnings surprise of 33.5%. In the past 60 days, the Zacks Consensus Estimate for GFF's 2024 earnings has increased 4.2 ...

ITT Inc. (ITT) stands to benefit from strength across its businesses, acquisitions and focus on operational excellence. The company remains focused on investing in growth opportunities and strengthening its long-term market position. It has a market capitalization of $10.5 billion. Over the past six months, it has gained 12.1%, compared with the industry's growth of 0.8%. ITT currently carries a Zacks Rank #2 (Buy). Image Source: Zacks Investment Research Let's delve into the factors that have been aiding t ...

Denifanstat achieved statistically significant results on primary and secondary liver biopsy endpoints in the ITT population, including both histology endpoints recommended in the FDA draft guidance for accelerated approval in MASH Statistical significance also shown in improvement of liver fibrosis ≥2-stage without worsening of MASH in the mITT population, including in patients with baseline stage 3 fibrosis Tripalmitin, a biomarker of denifanstat activity, showed an early and sustained reduction in de nov ...