The 10-second takeaway
For the quarter ended March 31 (Q1), ITT met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share expanded significantly. GAAP earnings per share expanded significantly.
Margins grew across the board.
ITT reported revenue of $608.2 million. The four analysts polled by S&P Capital IQ looked for sales of $610.2 million on the same basis. GAAP reported sales were 5.4% higher than the prior-year quarter's $577.0 million.
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 $0.47. The six earnings estimates compiled by S&P Capital IQ anticipated $0.43 per share. Non-GAAP EPS of $0.47 for Q1 were 21% higher than the prior-year quarter's $0.39 per share. (The prior-year quarter included -$0.07 per share in earnings from discontinued operations.) GAAP EPS of $0.22 for Q1 were much higher than the prior-year quarter's $0.03 per share. (The prior-year quarter included -$0.07 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 31.3%, 130 basis points better than the prior-year quarter. Operating margin was 9.8%, 30 basis points better than the prior-year quarter. Net margin was 3.4%, 290 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $599.4 million. On the bottom line, the average EPS estimate is $0.45.
Next year's average estimate for revenue is $2.45 billion. The average EPS estimate is $1.89.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 331 members out of 354 rating the stock outperform, and 23 members rating it underperform. Among 95 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 90 give ITT a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ITT is outperform, with an average price target of $26.56.
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