Fortive Corp. (FTV) recently reported a profit increase in its fourth quarter which exceeded market expectations. However, the company's projected earnings and revenue outlook for the first quarter fell short of market estimates. Importantly, the company predicts higher returns for fiscal 2024, surpassing Wall Street forecasts.
In the first quarter of 2024, Fortive expects a net earnings per share in the range of $0.44 to $0.47. The company also projects an adjusted earnings per share of $0.77 to $0.80 and revenue approximating $1.5 billion.
Collective estimates from analysts, according to Thomson Reuters, predict the company will earn $0.82 per share with revenues reaching $1.52 billion for the quarter. Usually, these estimates do not consider special items.
For the full year 2024, Fortive forecasts net earnings per share to be between $2.58 to $2.70. The company also anticipates an adjusted earnings per share of $3.73 to $3.85 and total revenue approximating $6.4 billion to $6.5 billion.
Analysts predict that for the year, the company will earn $3.68 per share, with revenues reaching $6.36 billion.
In fiscal 2023, the company reported net earnings per share of $2.43, adjusted earnings per share of $3.43, and total revenues of $6.07 billion.
James Lico, President and CEO of Fortive, expressed confidence in the company's 2024 outlook. He mentioned the company's continued mid-single-digit core growth and mid-teens compounded earnings and free cash flow annually since 2019.
In its fourth quarter, Fortive's profit amounted to $265.2 million, or $0.75 per share. This is an increase compared to the previous year's fourth quarter which amounted to $227.2 million, or $0.64 per share.
Adjusted earnings for the period were $348.7 million or $0.98 per share. Analysts had anticipated the company to earn $0.94 per share.
The company's revenue for the quarter increased by 3.3% to $1.58 billion from $1.53 billion the previous year.
