Fortive(US:FTV)2024-07-24 11:33Financial Performance - Fortive reported net earnings of $195 million and adjusted net earnings of $329 million for Q2 2024, with diluted EPS of $0.55 and adjusted diluted EPS of $0.93[2][4]. - Revenues for Q2 2024 increased by 2% year-over-year to $1.55 billion, with flat core revenue growth[3][6]. - Operating profit margin was 19%, and adjusted operating profit margin was 27%, reflecting a year-over-year increase of 90 basis points[6]. - Net earnings for the six months ended June 28, 2024, increased to $402.5 million, up from $382.6 million for the same period in 2023, reflecting a growth of 5.2%[24]. - Total revenue for the three months ended June 28, 2024, was $1,552.4 million, representing a 1.7% increase compared to $1,526.4 million for the same period in 2023[46]. - Adjusted operating profit for the three months ended June 28, 2024, was $417.3 million, up from $396.6 million in the prior year, with an adjusted operating profit margin of 26.9%[46]. - Core revenue growth for the six months ended June 28, 2024, was 1.2% compared to the same period in 2023, while total revenue growth was 3.0%[49]. - The company reported an adjusted net earnings of $329.1 million for the three months ended June 28, 2024, compared to $303.1 million in the same period last year[48]. Future Outlook - For Q3 2024, Fortive anticipates revenue of approximately $1.55 billion, with diluted EPS guidance of $0.63 to $0.66 and adjusted diluted EPS of $0.92 to $0.95[4][5]. - The full-year 2024 revenue outlook is projected to be between $6.25 billion and $6.30 billion, with diluted EPS guidance of $2.68 to $2.74, representing a year-over-year increase of 10% to 13%[5][6]. - Forecasted adjusted diluted net earnings per share for the three months ending September 27, 2024, is expected to be between $0.92 and $0.95[52]. - Anticipated pretax amortization of acquisition-related intangible assets is projected to be $0.32 per share for the three months ending September 27, 2024[52]. Cash Flow and Investments - Operating cash flow for Q2 2024 was reported at $309 million, with free cash flow of $280 million, both exceeding guidance[6]. - The company recorded a net cash provided by operating activities of $565.6 million for the six months ended June 28, 2024, compared to $495.4 million for the same period in 2023, indicating an increase of 14.1%[24]. - Cash paid for acquisitions amounted to $1,721.8 million during the six months ended June 28, 2024, with no comparable figure for the previous year, highlighting significant investment activity[24]. - Free cash flow for the three months ended June 28, 2024, was $279.7 million, a decrease of 6.8% from $300.0 million in the same period last year[51]. - Operating cash flows for the six months ended June 28, 2024, increased by 14.2% to $565.6 million from $495.4 million in the prior year[51]. Asset and Equity Changes - Total current assets decreased from $3,671.6 million as of December 31, 2023, to $2,519.5 million as of June 28, 2024, representing a decline of approximately 31.2%[22]. - The ending balance of cash and equivalents decreased to $644.1 million as of June 28, 2024, down from $1,888.8 million at the beginning of the period, a decline of approximately 66.0%[24]. - Total assets increased from $16,911.8 million as of December 31, 2023, to $17,285.0 million as of June 28, 2024, reflecting a growth of approximately 2.2%[22]. - The company’s total stockholders' equity rose to $10,505.8 million as of June 28, 2024, compared to $10,325.3 million as of December 31, 2023, an increase of about 1.7%[22]. - The current portion of long-term debt was reported at $383.9 million as of June 28, 2024, indicating a new liability compared to no current portion reported as of December 31, 2023[22]. Market and Operational Insights - The Precision Technologies segment is expected to show double-digit earnings and cash flow growth, indicating a balanced view of end markets[6]. - Fortive's leadership in durable growth markets is highlighted by strong performance in Advanced Healthcare Solutions and Intelligent Operating Solutions[4][6]. - The company is focused on accelerating innovation and new product launches to deliver sustainable growth[6]. - Fortive employs over 18,000 employees across more than 50 countries, emphasizing its global operational reach[9]. Other Financial Events - The company reported a loss from divestiture of $25.6 million related to the Invetech Divestiture during the three and six-month periods ended June 28, 2024[34]. - A gain on the sale of property of $63.1 million was recorded during the six-month period ended June 28, 2024, contributing positively to earnings[35]. - The impact of currency translation on total revenue growth was a decrease of 1.0% for the three months ended June 28, 2024[49]. - The company’s GAAP operating profit margin improved to 19.4% for the three months ended June 28, 2024, compared to 19.1% in the prior year[46].