ITT Beats on Both Top and Bottom Lines
ITT (NYS: ITT) reported earnings on May 4. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), ITT beat expectations on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue contracted significantly and GAAP earnings per share dropped significantly.
Gross margins grew, operating margins shrank, net margins dropped.
ITT booked revenue of $577.0 million. The three analysts polled by S&P Capital IQ expected a top line of $557.0 million on the same basis. GAAP reported sales were 79% lower than the prior-year quarter's $2.76 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.39. The three earnings estimates compiled by S&P Capital IQ predicted $0.31 per share. GAAP EPS of $0.03 for Q1 were 98% lower than the prior-year quarter's $1.32 per share. (The prior-year quarter included -$0.02 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 30.0%, 160 basis points better than the prior-year quarter. Operating margin was 8.7%, 200 basis points worse than the prior-year quarter. Net margin was 0.5%, 400 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $583.8 million. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $2.24 billion. The average EPS estimate is $1.68.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 352 members out of 373 rating the stock outperform, and 21 members rating it underperform. Among 89 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 83 give ITT a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ITT is hold, with an average price target of $25.25.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.