Workflow
Fortive(FTV) - 2024 Q3 - Quarterly Results
FTVFortive(FTV)2024-10-30 11:33
Transcript
Slide

Financial Performance - Fortive reported Q3 2024 revenue of 1.54billion,a31.54 billion, a 3% year-over-year increase, with 1% core revenue growth[2]. - GAAP diluted EPS for Q3 2024 was 0.63, while adjusted diluted EPS was 0.97,reflectinga140.97, reflecting a 14% year-over-year increase[1]. - Operating profit margin was 19%, with an adjusted operating profit margin of 27%, up 90 basis points year-over-year[1]. - For Q4 2024, Fortive anticipates revenue between 1.63 billion and 1.65billion,withdilutedEPSprojectedat1.65 billion, with diluted EPS projected at 0.72 to 0.75[3].−Full−year2024revenueisexpectedtobeapproximately0.75[3]. - Full-year 2024 revenue is expected to be approximately 6.24 billion to 6.26billion,withGAAPdilutedEPSof6.26 billion, with GAAP diluted EPS of 2.47 to 2.50[4].−StrongperformanceinrecurringrevenuegrowthwasnotedinIntelligentOperatingSolutionsandAdvancedHealthcareSolutions[3].−TotalsalesforthethirdquarterendedSeptember29,2023,were2.50[4]. - Strong performance in recurring revenue growth was noted in Intelligent Operating Solutions and Advanced Healthcare Solutions[3]. - Total sales for the third quarter ended September 29, 2023, were 1,534.6 million, a 2.4% increase from 1,494.5millioninthesameperiodlastyear[17].−IntelligentOperatingSolutionssegmentreportedsalesof1,494.5 million in the same period last year[17]. - Intelligent Operating Solutions segment reported sales of 661.2 million, up 2.7% from 644.3millionyear−over−year[17].−AdvancedHealthcareSolutionssegmentachievedsalesof644.3 million year-over-year[17]. - Advanced Healthcare Solutions segment achieved sales of 322.5 million, representing an 8.3% increase compared to 297.7millionintheprioryear[17].−Operatingprofitforthetotalcompanywas297.7 million in the prior year[17]. - Operating profit for the total company was 295.5 million, slightly up from 291.1millioninthepreviousyear,resultinginanoperatingmarginof19.3291.1 million in the previous year, resulting in an operating margin of 19.3%[17]. - Adjusted net earnings for the three months ended September 27, 2024, were 341.6 million, compared to 301.6millionforthesameperiodin2023[43].−Theoperatingprofitmargin(GAAP)fortheninemonthsendedSeptember27,2024,was19.5301.6 million for the same period in 2023[43]. - The operating profit margin (GAAP) for the nine months ended September 27, 2024, was 19.5%, compared to 18.4% for the same period in 2023[41]. Cash Flow and Investments - Fortive reported operating cash flow of 459 million and free cash flow of 431millionforQ32024,bothup12431 million for Q3 2024, both up 12% year-over-year[1]. - Cash flows from operating activities for the nine months ended September 27, 2024, totaled 1,024.6 million, an increase from 906.8millionintheprioryear[20].−FreeCashFlow(Non−GAAP)forthethreemonthsendedSeptember27,2024,was906.8 million in the prior year[20]. - Free Cash Flow (Non-GAAP) for the three months ended September 27, 2024, was 431.2 million, reflecting a 12.4% increase from 383.5millionintheprioryear[46].−FreeCashFlow(Non−GAAP)fortheninemonthsendedSeptember27,2024,was383.5 million in the prior year[46]. - Free Cash Flow (Non-GAAP) for the nine months ended September 27, 2024, was 941.2 million, a 13.0% increase from 833.1millionintheprioryear[46].−Thecompanyreportedanetcashusedininvestingactivitiesof833.1 million in the prior year[46]. - The company reported a net cash used in investing activities of 1,799.8 million, significantly higher than 124.2millioninthepreviousyear,primarilyduetocashpaidforacquisitions[20].FutureOutlook−Fortiveexpectsdouble−digitgrowthinbothearningsandcashflowfor2024,drivenbystabilizingdemandtrends[5].−ThecompanyplanstoseparateintotwoindependentpubliclytradedcompaniesbyQ42025,focusingondistinctmarketsegments[6].−ThecompanyexpectstoexecuteadiscreterestructuringplanrelatedtotheSeparationbeginninginthefourthquarterof2024[33].−ForecastedAdjustedDilutedNetEarningsPerShare(Non−GAAP)forthetwelvemonthsendingDecember31,2024,isprojectedtobebetween124.2 million in the previous year, primarily due to cash paid for acquisitions[20]. Future Outlook - Fortive expects double-digit growth in both earnings and cash flow for 2024, driven by stabilizing demand trends[5]. - The company plans to separate into two independent publicly traded companies by Q4 2025, focusing on distinct market segments[6]. - The company expects to execute a discrete restructuring plan related to the Separation beginning in the fourth quarter of 2024[33]. - Forecasted Adjusted Diluted Net Earnings Per Share (Non-GAAP) for the twelve months ending December 31, 2024, is projected to be between 3.84 and 3.87[47].−Anticipatedpretaxamortizationofacquisition−relatedintangibleassetsisestimatedat3.87[47]. - Anticipated pretax amortization of acquisition-related intangible assets is estimated at 1.29 for the twelve months ending December 31, 2024[47]. - Anticipated pretax acquisition and divestiture-related items are expected to be 0.18forthetwelvemonthsendingDecember31,2024[47].−Thecompanyexpectsapretaxgainfromthesaleofpropertyandcharitablecontributionexpensetobe0.18 for the twelve months ending December 31, 2024[47]. - The company expects a pretax gain from the sale of property and charitable contribution expense to be (0.12) for the twelve months ending December 31, 2024[47]. - The tax effect of the adjustments reflected above is anticipated to be (0.22)forthetwelvemonthsendingDecember31,2024[47].−Thecompanyanticipatespretaxdiscreterestructuringchargesof(0.22) for the twelve months ending December 31, 2024[47]. - The company anticipates pretax discrete restructuring charges of 0.06 for the twelve months ending December 31, 2024[47]. Assets and Equity - Total assets as of September 27, 2024, were 17,453.6million,upfrom17,453.6 million, up from 16,911.8 million at the end of December 31, 2023[19]. - Goodwill increased to 10,322.3millionasofSeptember27,2024,comparedto10,322.3 million as of September 27, 2024, compared to 9,121.7 million at the end of December 31, 2023[19]. - Total stockholders' equity increased to 10,561.5millionasofSeptember27,2024,comparedto10,561.5 million as of September 27, 2024, compared to 10,325.3 million at the end of December 31, 2023[19]. Impairments and Charges - The company recognized 2.9millionrelatedtoimpairmentchargesduringthenine−monthperiodendedSeptember29,2023[25].−Thecompanyrecordedagainonthesaleofpropertyof2.9 million related to impairment charges during the nine-month period ended September 29, 2023[25]. - The company recorded a gain on the sale of property of 63.1 million during the nine-month period ended September 27, 2024[30]. Capital Expenditures - Capital expenditures (GAAP) for the three months ended September 27, 2024, were (27.8)million,slightlydownfrom(27.8) million, slightly down from (27.9) million in the same period last year[46].