Fortive(US:FTV)2024-10-30 11:33Financial Performance - Fortive reported Q3 2024 revenue of $1.54 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, 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 $1.65 billion, with diluted EPS projected at $0.72 to $0.75[3]. - Full-year 2024 revenue is expected to be approximately $6.24 billion to $6.26 billion, with GAAP diluted EPS of $2.47 to $2.50[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 $1,494.5 million in the same period last year[17]. - Intelligent Operating Solutions segment reported sales of $661.2 million, up 2.7% from $644.3 million year-over-year[17]. - Advanced Healthcare Solutions segment achieved sales of $322.5 million, representing an 8.3% increase compared to $297.7 million in the prior year[17]. - Operating profit for the total company was $295.5 million, slightly up from $291.1 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 $301.6 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 $431 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 $906.8 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 $383.5 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 $833.1 million in the prior year[46]. - The company reported a net cash used in investing activities of $1,799.8 million, significantly higher than $124.2 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]. - 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 $0.18 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) 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 $17,453.6 million, up from $16,911.8 million at the end of December 31, 2023[19]. - Goodwill increased to $10,322.3 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 $10,561.5 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 $2.9 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, slightly down from $(27.9) million in the same period last year[46].