Fortive Q4 Earnings Beat Estimates, Revenues Increase Y/Y

Core Insights - Fortive Corporation reported fourth-quarter 2024 adjusted EPS of $1.17, exceeding the Zacks Consensus Estimate by 4.5% and reflecting a year-over-year increase of 19.4% [1] - Revenues for the quarter rose 2.3% year over year to $1.62 billion, although this figure missed the Zacks Consensus Estimate by 0.5% [2] - The company plans to separate its Precision Technologies business into an independent publicly traded company named Ralliant, expected to close in early Q3 2025 [3] Financial Performance - The Intelligent Operating Solutions segment generated revenues of $710.8 million, contributing 43.9% to total revenues, up 4.1% year over year [5] - Precision Technologies segment revenues totaled $567.7 million, down 0.4% year over year [5] - Advanced Healthcare Solutions reported revenues of $341.8 million, up 3.2% year over year [5] - Gross profit increased 3.1% to $977.2 million, with an adjusted operating margin of 28.7%, up 1% year over year [6] Cash Flow and Share Repurchase - Fortive used its second-half free cash flow to repurchase about 10 million shares, representing 80% of its free cash flow [4] - As of December 31, 2024, cash and cash equivalents were $813.3 million, with operating cash flow of $502.2 million for the fourth quarter [7] Future Outlook - For 2025, Fortive anticipates revenues between $6.23 billion and $6.35 billion, with core revenue growth of 1.5% to 3.5% [8] - Adjusted diluted EPS is expected to be between $4 and $4.12, reflecting a year-over-year increase of 3% to 6% [8] - For Q1 2025, core revenues are expected to be flat, with adjusted EPS projected between 83 cents and 86 cents [10]