The 10-second takeaway
For the quarter ended Dec. 31 (Q4), ITT beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share contracted to a loss.
Gross margins contracted, operating margins contracted, net margins improved.
ITT recorded revenue of $518.0 million. The three analysts polled by S&P Capital IQ expected sales of $508.8 million on the same basis. GAAP reported sales were 9.8% higher than the prior-year quarter's -$6.05 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.36. The five earnings estimates compiled by S&P Capital IQ averaged $0.36 per share on the same basis. GAAP EPS were -$5.38 for Q4 compared to $2.96 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 27.5%, 10 basis points worse than the prior-year quarter. Operating margin was 11.0%, 130 basis points worse than the prior-year quarter. Net margin was 7.5%, 1,200 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $550.2 million. On the bottom line, the average EPS estimate is $0.33.
Next year's average estimate for revenue is $2.27 billion. The average EPS estimate is $1.69.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 350 members out of 366 rating the stock outperform, and 16 members rating it underperform. Among 101 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 98 give ITT a green thumbs-up, and three 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 $24.57.
Over the decades, small-cap stocks, like ITT have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add ITT to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley 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 may not 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.