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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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 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 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.