ITT Inc. (NYSE: ITT), a leading engineered components manufacturer for critical industries, is set to release its fourth-quarter earnings report tomorrow before the market opens. This preview outlines key expectations and recent performance indicators for the company.
Table Content:
In the previous quarter, ITT met analysts’ revenue expectations, reporting $885.2 million, a 7.7% year-over-year increase. While EBITDA exceeded estimates, organic revenue aligned with projections, resulting in a mixed performance overall.
Q4 Revenue and Earnings Projections
For the fourth quarter, analysts anticipate a significant acceleration in revenue growth. Consensus estimates predict a 12% year-over-year increase, reaching $928.3 million, compared to a 7% rise in the same quarter last year. Adjusted earnings per share are projected to be $1.47.
Analyst Confidence and Historical Performance
Analysts have largely maintained their earnings estimates over the past month, indicating confidence in ITT’s performance leading into this earnings announcement. Historically, ITT has consistently outperformed revenue expectations, exceeding them by an average of 1.7% over the past two years and missing estimates only once.
Peer Performance in the Gas and Liquid Handling Segment
Examining recent Q4 results from ITT’s peers in the gas and liquid handling segment offers further context. Standex International Corporation (NYSE: SXI) reported a 6.4% year-on-year revenue increase, surpassing estimates by 0.5%. Conversely, IDEX Corporation (NYSE: IEX) recorded a 9.4% revenue growth, slightly below expectations by 0.6%. Following its earnings release, Standex’s stock price declined by 2.2%.
Market Sentiment and Price Target
Investor sentiment in the gas and liquid handling sector has remained positive leading up to earnings season, with average share prices rising by 1.7% over the last month. ITT’s stock has outperformed the sector, gaining 3.7% during the same period. The current average analyst price target for ITT is $172.60, significantly higher than its current share price of $148.82. This suggests potential upside for the stock.
Conclusion: Strong Growth Anticipated for ITT
The consensus view points towards a strong fourth quarter for ITT, with double-digit revenue growth and solid earnings per share. While peer performance has been mixed, ITT’s consistent track record of exceeding expectations and positive market sentiment suggest a favorable outlook for the company. The upcoming earnings release will provide further clarity on ITT’s performance and future prospects.
