|Bid||0.00 x 800|
|Ask||0.00 x 1100|
|Day's Range||78.16 - 79.18|
|52 Week Range||63.51 - 89.48|
|Beta (5Y Monthly)||1.25|
|PE Ratio (TTM)||10.32|
|Earnings Date||Feb 05, 2020|
|Forward Dividend & Yield||0.28 (0.36%)|
|Ex-Dividend Date||Nov 25, 2019|
|1y Target Est||80.40|
(Bloomberg Opinion) -- There’s no clearer sign we’ve reached peak breakup in industrials than a pure-play transportation and logistics company blaming a “conglomerate discount” for its decision to consider cleaving itself into smaller pieces.XPO Logistics Inc. confirmed late Wednesday that it was exploring strategic alternatives including the possible sale or spinoff of one or more of its units. The review could see businesses that generate as much as 75% of XPO’s revenue jettisoned, with the European, North American and Asia-Pacific supply-chain operations and its European and North American transportation arms all potentially on the block, people familiar with the matter told Bloomberg News. That would leave XPO with its North American short-haul trucking business. XPO CEO Brad Jacobs told Bloomberg TV he’s exploring breakup options because the company is suffering from a “conglomerate discount” and “Wall Street understands pure plays.”Those are in-vogue words right now for industrial CEOs after an unprecedented wave of breakups. But the majority of those splits involved businesses that had little or only tenuous connections to each other – think the separation of Ingersoll-Rand Plc’s golf cart, tools and pumps business from its HVAC division, or United Technologies Corp.’s breakup of its aviation, climate and elevator businesses. Even controversial breakups such as Honeywell International Inc.’s spinoff of its Resideo Technologies Inc. thermostat and Garrett Motion Inc. turbochargers businesses, or Fortive Corp.’s plan to carve out its legacy industrial products, involved divisions that clearly didn’t fit. XPO is splitting the hairs much more finely. According to its most recent annual filing, the company gets 65% of its revenue from transportation and 35% from logistics.All the same, the market clearly does love this move. The stock climbed more than 10% on the news, with some of that likely reflecting a squeeze on short sellers who have a 13.1% interest in shares outstanding, according to Markit. Citigroup Inc. analyst Christian Wetherbee estimated a breakup could add as much as $66 a share to XPO’s equity value. And that’s likely appealing for investors looking for a story to bet on amid generally elevated valuations elsewhere in industrial stocks. But it’s hard not to view this breakup plan as a waving of the white flag for a company that was built via consolidation but has struggled of late to get deals done. XPO hasn’t announced a major acquisition since 2015, despite Jacobs’s exclamation in 2017 that he was ready to spend up to $8 billion. Last year, XPO said it would pivot away from M&A and plow billions into share buybacks instead. That helped drive XPO shares to a 40% gain in 2019, despite a recession in freight markets.With its debt levels rising and little in the way of real earnings growth, keeping the party going presented a challenge. Jacobs laid out a plan in August to add as much as $1 billion of profit by 2022 via cost cuts and new business. Bloomberg Intelligence analyst Lee Klaskow, who noted at the time that such a push carried significant execution risk, says the breakup may be a sign that XPO had already squeezed all it could from the business as far as operating improvements and technology investments.The point of all of XPO’s M&A activity was to wring costs out of the combined operations and gain more negotiating clout with suppliers. Jacobs told Bloomberg TV that XPO’s combination of businesses had helped it add more than $2 billion of revenue organically. “We actually will lose some bargaining power as smaller companies with vendors because we won’t have the global procurement capability,” Jacobs said. But he thinks smaller, more agile businesses will be more appealing to both customers and shareholders.When a CEO is talking out of two sides of his mouth, it sure sounds like financial engineering.To contact the author of this story: Brooke Sutherland at email@example.comTo contact the editor responsible for this story: Beth Williams at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
New information has been disclosed about a publicly-traded company that’s tapped the Triangle for a new headquarters operation.
Fortive Corporation ("Fortive") (NYSE: FTV) today announced that the name of the new global industrial company which is expected to separate from Fortive later this year will be Vontier Corporation ("Vontier"). Vontier will focus on transportation and mobility markets and will be comprised initially of a portfolio of leading retail and commercial fueling, fleet management, and professional tools brands, including Gilbarco Veeder-Root, Matco Tools, and Teletrac Navman.
Fortive Corporation ("Fortive") (NYSE: FTV) announced today that it will webcast its earnings conference call for the fourth quarter 2019 on Thursday, February 6, 2020 beginning at 5:30 p.m. ET and lasting approximately 1 hour.
The technology sector is made up of companies that, among other things, manufacture consumer electronics and their components, develop software, and provide information technology (IT) services like cloud hosting.
Amid an overall bull market, many stocks that smart money investors were collectively bullish on surged in 2019. Among them, Facebook and Microsoft ranked among the top 3 picks and these stocks gained 57%. Our research shows that most of the stocks that smart money likes historically generate strong risk-adjusted returns. That's why we weren't […]
Columbus McKinnon Corporation announced Wednesday that Mark Morelli is exiting as president and CEO to take the same role with a new venture formed by Fortive.
Fortive Corporation ("Fortive") (NYSE: FTV) today announced the appointments of Mark D. Morelli as President & Chief Executive Officer and David H. Naemura as Chief Financial Officer of NewCo, a global industrial company that Fortive previously announced it will form as part of its planned separation into two independent, publicly traded companies. Both Mr. Morelli and Mr. Naemura will assume their respective roles with NewCo in the first quarter of 2020. Fortive also announced its intention to appoint Karen C. Francis as the Chair of the Board of Directors of NewCo immediately prior to NewCo becoming a public company. Fortive continues to expect to complete the separation in the second half of 2020.
Is Fortive Corporation (NYSE:FTV) a good bet right now? We like to analyze hedge fund sentiment before conducting days of in-depth research. We do so because hedge funds and other elite investors have numerous Ivy League graduates, expert network advisers, and supply chain tipsters working or consulting for them. There is not a shortage of […]
It's only the second year median worker pay disclosures have been required, and not all the more than 70 public companies in Washington state have released those figures.
Fortive Corporation announced that Senior Vice President and Chief Financial Officer, Chuck McLaughlin, will be presenting at the Credit Suisse 7th Annual Industrials Conference in Palm Beach, FL on Wednesday, December 4th at 11:15 AM ET.
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). We'll show...
Fortive Corporation (“Fortive”) (FTV) announced today that its Board of Directors declared a regular quarterly cash dividend of $0.07 per share of its common stock, par value $0.01 per share, payable on December 27, 2019 to common stockholders of record on November 29, 2019. In addition, Fortive announced today that its Board of Directors declared a regular quarterly cash dividend of $12.50 per share of its 5.00% Mandatory Convertible Preferred Stock, Series A, par value $0.01 per share, payable on January 2, 2020 to preferred stockholders of record on December 15, 2019. Although Fortive expects to pay dividends on a quarterly basis, any subsequent declaration of dividends, including the amount, the record dates and the payment dates for any such future dividend payments, is subject to the discretion of the Board of Directors.
Fortive Corporation announced that President and Chief Executive Officer, James A. Lico, will be presenting at the Baird 2019 Global Industrial Conference in Chicago, Illinois on Tuesday, November 5th at 8:00AM CT.
Today we are going to look at Fortive Corporation (NYSE:FTV) to see whether it might be an attractive investment...
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Altra Industrial Motion Corp. New York, October 28, 2019 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Altra Industrial Motion Corp. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
The Triangle may soon get another public company. Fortive Corporation (NYSE: FTV), based in Washington state, announced in September its intention to split into two separate companies – and it now appears one of the newly-created, publicly-traded entities will be headquartered in the Triangle. Fortive CEO James Lico told analysts that the firm would be putting the headquarters of its spinoff in “Raleigh-Durham.” “We’ve got a location… we’ve made progress on a number of fronts, and we feel good about where we’re at,” he said on the call.
Altra Industrial's (AIMC) third-quarter 2019 earnings suffer from a decline in organic sales, and higher costs and expenses. It lowers projection for 2019 on end-market and macro woes.
Fortive (FTV) delivered earnings and revenue surprises of 0.00% and -1.22%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?