Fortive (NYSE:FTV) Issues Earnings Results, Misses Estimates By $0.02 EPS

Key Points

• Fortive reported a quarterly EPS of $0.58, missing analysts' estimates of $0.60 by $0.02, with revenue also falling short at $1.52 billion compared to the expected $1.54 billion.
• The company's shares dropped 2.5% following the earnings release, trading at approximately $46.75.
• Fortive has initiated a stock repurchase program authorizing the buyback of 15.63 million shares, indicating the board's belief that the stock is undervalued.

Fortive (NYSE:FTV - Get Free Report) released its quarterly earnings data on Wednesday. The technology company reported $0.58 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.60 by ($0.02), Zacks reports. Fortive had a net margin of 13.62% and a return on equity of 11.96%. The company had revenue of $1.52 billion for the quarter, compared to analyst estimates of $1.54 billion. During the same quarter in the prior year, the firm earned $0.93 EPS. The company's revenue for the quarter was down .4% compared to the same quarter last year. Fortive updated its FY 2025 guidance to 2.500-2.600 EPS.

Fortive Stock Down 2.5%

Shares of FTV traded down $1.18 during trading hours on Friday, hitting $46.75. 848,880 shares of the company were exchanged, compared to its average volume of 3,169,886. The company has a market cap of $15.89 billion, a PE ratio of 21.09, a PEG ratio of 3.08 and a beta of 1.09. The firm's 50 day moving average is $61.63 and its 200-day moving average is $69.78. Fortive has a 52 week low of $46.47 and a 52 week high of $83.32. The company has a debt-to-equity ratio of 0.28, a quick ratio of 0.78 and a current ratio of 0.98.

Wall Street Analysts Forecast Growth

FTV has been the subject of a number of analyst reports. TD Cowen lowered Fortive from a "buy" rating to a "hold" rating and reduced their price objective for the company from $85.00 to $50.00 in a research report on Tuesday, July 15th. Mizuho dropped their price objective on Fortive from $85.00 to $65.00 and set an "outperform" rating on the stock in a research note on Wednesday, July 16th. Melius Research raised Fortive to a "hold" rating in a research note on Tuesday, July 22nd. Cowen lowered Fortive from a "buy" rating to a "hold" rating in a research report on Tuesday, July 15th. Finally, BNP Paribas reaffirmed a "neutral" rating on shares of Fortive in a research report on Thursday, June 12th. Thirteen investment analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. Based on data from MarketBeat.com, Fortive presently has a consensus rating of "Hold" and an average price target of $65.86.

Fortive announced that its board has initiated a stock repurchase program on Tuesday, May 27th that authorizes the company to buyback 15,630,000 shares. This buyback authorization authorizes the technology company to buy shares of its stock through open market purchases. Stock buyback programs are generally an indication that the company's board believes its stock is undervalued.

Insider Activity

In related news, SVP Peter C. Underwood sold 14,327 shares of the stock in a transaction that occurred on Monday, May 12th. The stock was sold at an average price of $73.88, for a total transaction of $1,058,478.76. Following the completion of the sale, the senior vice president owned 51,750 shares in the company, valued at $3,823,290. This represents a 21.68% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO James A. Lico sold 175,000 shares of the stock in a transaction that occurred on Thursday, May 15th. The shares were sold at an average price of $72.40, for a total value of $12,670,000.00. Following the sale, the chief executive officer owned 428,585 shares of the company's stock, valued at approximately $31,029,554. The trade was a 28.99% decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 0.92% of the company's stock.

Institutional Trading of Fortive

Several hedge funds have recently added to or reduced their stakes in FTV. Geneos Wealth Management Inc. lifted its position in shares of Fortive by 246.2% in the 1st quarter. Geneos Wealth Management Inc. now owns 502 shares of the technology company's stock worth $37,000 after acquiring an additional 357 shares during the period. Brighton Jones LLC raised its holdings in shares of Fortive by 97.1% in the 4th quarter. Brighton Jones LLC now owns 5,706 shares of the technology company's stock worth $428,000 after buying an additional 2,811 shares in the last quarter. Finally, Empowered Funds LLC increased its holdings in Fortive by 6.9% during the 1st quarter. Empowered Funds LLC now owns 6,619 shares of the technology company's stock valued at $484,000 after purchasing an additional 430 shares in the last quarter. Institutional investors own 94.94% of the company's stock.

About Fortive

Fortive Corporation designs, develops, manufactures, and services professional and engineered products, software, and services in the United States, China, and internationally. It operates in three segments: Intelligent Operating Solutions, Precision Technologies, and Advanced Healthcare Solutions. The Intelligent Operating Solutions segment provides advanced instrumentation, software, and services, including electrical test and measurement, facility and asset lifecycle software applications, and connected worker safety and compliance solutions for manufacturing, process industries, healthcare, utilities and power, communications and electronics, and other industries.

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