Fortive Corporation FTV reported first-quarter 2020 earnings of 74 cents per share, outpacing the Zacks Consensus Estimate by 2 cents. The figure increased 7.2% from the year-ago quarter but decreased 28.2% on a sequential basis.
Revenues increased 7.6% year over year but decreased 14.4% sequentially to $1.7 billion. Core revenues declined 3.8% from the year-ago quarter.
The top line missed the Zacks Consensus Estimate of $1.83 billion due to impacts of the COVID-19 pandemic.
Fortive Corporation Price, Consensus and EPS Surprise
Fortive Corporation price-consensus-eps-surprise-chart | Fortive Corporation Quote
Top Line in Detail
Fortive operates under the following two organized segments.
Professional Instrumentation: The segment generated revenues of $1.1 billion (64.5% of total first-quarter revenues), which increased 13% on a year-over-year basis. The increase was driven by contributions from acquisitions.
Industrial Technologies: This segment generated revenues of $609.1 million (35.5% of total revenues), which declined 1% from the prior-year quarter.
In the first quarter, gross margin came in at 51.1%, which expanded 10 basis points (bps) year over year.
Total operating expenses were $670.9 million, reflecting a 12.7% year-over-year increase. As a percentage of revenues, selling, general & administrative expenses increased from the year-ago quarter, while research & development costs decreased slightly.
Operating margin was 7%, which contracted 660 bps on a year-over-year basis.
Segment wise, operating margin from Professional Instrumentation came in at 13.1%, which contracted 150 bps year over year.
Industrial Technologies operating margins came in at (0.2%) versus 16.1% in the year-ago quarter.
The company did not provide any guidance for the June quarter due to risks and uncertainties related to COVID-19 crisis.
Zacks Rank & Stocks to Consider
Currently, Fortive carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Akamai Technologies, Inc. AKAM, Inuvo, Inc. INUV and Shopify Inc. SHOP, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth for Akamai, Inuvo, and Shopify is currently projected at 12.3%, 30% and 25.8%, respectively.
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