U.S. markets close in 1 hour 44 minutes

Fortive (FTV) Gears Up for Q4 Earnings: What's in the Cards?

Zacks Equity Research

Fortive Corporation FTV is slated to report fourth-quarter 2019 results on Feb 6. In the last reported quarter, it came up with in-line results.

The company topped the Zacks Consensus Estimate in three of the trailing four quarters, delivering average positive surprise of 2.1%.

Estimates for Q4

Fortive expects fourth-quarter 2019 non-GAAP earnings in the range of 96 cents to $1.01 per share. The Zacks Consensus Estimate for earnings is currently pegged at $97 cents per share, indicating growth of 6.6% from the year-ago quarter.

The Zacks Consensus Estimate for revenues is pegged at $1.98 billion, indicating growth of 12.6% from the year-ago reported figure.

Let’s see how things have shaped up for this announcement.

Fortive Corporation Price and EPS Surprise


Fortive Corporation Price and EPS Surprise

Fortive Corporation price-eps-surprise | Fortive Corporation Quote

Performance in the Last Reported Quarter

Fortive had reported third-quarter 2019 non-GAAP earnings of 87 cents per share, inline with the Zacks Consensus Estimate. The figure increased 17.6% from the year-ago quarter but decreased 3.3% on a sequential basis.

Revenues of $1.86 billion missed the Zacks Consensus Estimate by 1.2%.

Acquisitions & Portfolio Strength — Key Catalysts

Fortive has made strong endeavors toward innovation and expansion of key offerings on the back of strong and accretive acquisitions. Acquisitions including Industrial Scientific and Landauer are expected to have driven its performance in the to-be-reported quarter.

Also, the integration of Advanced Sterilization Products is expected to have been on track and is likely to have benefited the company’s top-line growth.

Strength in the Professional Instrumentation segment — driven by acquisitions —is anticipated to be reflected in the upcoming quarterly results. The Zacks Consensus Estimate for revenues from Professional Instrumentation is pegged at $1.15 billion, indicating a 3% year-over-year increase.

The Zacks Consensus Estimate for revenues from the Industrial Technologies segment for the to-be-reported quarter is pegged at $800 million, suggesting a 7.5% year-over-year improvement.

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

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Fortive this time around. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.

Earnings ESP: The company has an Earnings ESP of -4.45%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Fortive has a Zacks Rank #3.

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.

Five9, Inc. FIVN has an Earnings ESP of +1.33% and a Zacks Rank of 2.

AMETEK, Inc. AME has an Earnings ESP of +1.02% and a Zacks Rank #3.

Applied Optoelectronics, Inc. AAOI has an Earnings ESP of +8.12% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Free: Zacks’ Single Best Stock Set to Double

Today you are invited to download our latest Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, SherazMian hand-picks one to have the most explosive upside of all.

This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.

See 5 Stocks Set to Double>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Five9, Inc. (FIVN) : Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report
AMETEK, Inc. (AME) : Free Stock Analysis Report
Fortive Corporation (FTV) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research