Fortive Corporation (NYSE:FTV) Just Reported Full-Year Earnings: Have Analysts Changed Their Mind On The Stock?
Shareholders of Fortive Corporation (NYSE:FTV) will be pleased this week, given that the stock price is up 12% to US$83.02 following its latest annual results. The result was positive overall - although revenues of US$6.1b were in line with what the analysts predicted, Fortive surprised by delivering a statutory profit of US$2.43 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for Fortive
Taking into account the latest results, the current consensus from Fortive's 17 analysts is for revenues of US$6.48b in 2024. This would reflect a modest 6.8% increase on its revenue over the past 12 months. Per-share earnings are expected to climb 10% to US$2.72. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$6.34b and earnings per share (EPS) of US$2.75 in 2024. There doesn't appear to have been a major change in sentiment following the results, other than the small lift in revenue estimates.
It may not be a surprise to see thatthe analysts have reconfirmed their price target of US$85.41, implying that the uplift in revenue is not expected to greatly contribute to Fortive's valuation in the near term. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Fortive analyst has a price target of US$98.00 per share, while the most pessimistic values it at US$74.70. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Fortive's past performance and to peers in the same industry. The analysts are definitely expecting Fortive's growth to accelerate, with the forecast 6.8% annualised growth to the end of 2024 ranking favourably alongside historical growth of 3.7% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.2% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Fortive to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at US$85.41, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Fortive going out to 2026, and you can see them free on our platform here.
It might also be worth considering whether Fortive's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
