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Fortive (FTV) Gears Up for Q1 Earnings: What's in the Cards?

Zacks Equity Research

Fortive Corporation FTV is slated to report first-quarter 2019 results on Apr 25.

The company topped the Zacks Consensus Estimate in three of the trailing four quarters, recording average positive surprise of 2.80%.

In the last reported quarter, Fortive delivered a positive earnings surprise of 5.81%. Earnings of 91 cents per share increased 10% year over year and 5% on a sequential basis.

Robust product portfolio, solid momentum across all its platforms and benefits from acquisitions are likely to drive the upcoming results. However, end-market cyclicality and higher expenses might impact earnings.

For first-quarter 2019, Fortive anticipates adjusted net earnings between 64 cents and 68 cents per share. The Zacks Consensus Estimate for earnings is pegged at 68 cents per share.

Further, the Zacks Consensus Estimate for revenues is pegged at $1.66 billion.

Let’s see how things are shaping up for the upcoming quarterly results.

Acquisitions & Portfolio Strength — Key Catalysts

Fortive’s strong endeavors toward innovation and expansion of key offerings on the back of strong and accretive acquisitions will likely drive top-line growth in the quarter to be reported as well.

The company’s acquisitions of eMaint, Orpak, Landauer and Industrial Scientific, which aided the expansion of Fortive’s product portfolio, are expected to drive core revenues in the to-be-reported quarter.

However, higher expenses incurred on these acquisitions and integration issues may impact the upcoming quarterly results.

The Zacks Consensus Estimate for revenues from Professional Instrumentation and Industrial Technologies segments for the to-be-reported quarter is pegged at $971 million and $642 million, respectively.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has a good chance of beating estimates. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Fortive currently has a Zacks Rank #1 and an Earnings ESP of 0.00%. Hence, our proven model indicates that the company is unlikely to beat estimates in the first quarter.

Fortive Corporation Price and EPS Surprise


Fortive Corporation Price and EPS Surprise | Fortive Corporation Quote

Stocks That Warrant a Look

Here are a few stocks worth considering as our model shows that these have the right combination of elements to deliver an earnings beat in the upcoming releases.

PayPal Holdings, Inc. PYPL has an Earnings ESP of +1.06% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Amazon.com, Inc. AMZN has an Earnings ESP of +10.65% and a Zacks Rank #2.

Juniper Networks, Inc. JNPR has an Earnings ESP of +10.00% and holds a Zacks Rank #2.

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