NYSE$ITT

ITT Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

ITT reported strong results and raised 2021 outlook.

ITT Inc. reported a 17% year-over-year revenue increase, driven by growth in Motion Technologies’ Friction aftermarket business, the connector business in Connect & Control Technologies, and short cycle demand in Industrial Process. EPS was $1.00, up 282%, and adjusted EPS was $0.99, up 21%. The company raised its full-year adjusted earnings per share outlook to a new range of $4.01 to $4.06.

  • Revenue up 17%, organic revenue up 16% driven by demand across all segments
  • Segment operating margin of 16.1%, up 190 bps
  • Adjusted segment operating margin of 16.8%, up 60 bps
  • Earnings Per Share (EPS) of $1.00, up 282%; adjusted EPS of $0.99 up 21%; exceeding 2019

Headline financials

Total Revenue

$690M

Previous: $591M+16.6%
EPS (adj)

$0.99

Previous: $0.82+20.7%
Total Organic Growth

15.6%

Previous: -18.0%+186.7%
Motion Technologies Organic Growth

20.3%

Previous: -13.0%+256.2%
Industrial Process Organic Growth

8.1%

Previous: -19.0%+142.6%
Connect & Control Technologies Organic Growth

17.0%

Previous: -26.0%+165.4%
Free Cash Flow

$87.5M

Previous: -$46.8M+287.0%
Net Income

$87.5M

Previous: -$46.8M+287.0%
Operating Income

$102M

Previous: -$62.5M+262.7%
Gross Profit

$222M

Previous: $191M+16.5%
Cash & Equivalents

$586M

Previous: $782M-25.1%
Total Assets

$3.45B

Previous: $4.18B-17.3%
Stock-Based Comp

$4.4M

Previous: $3.9M+12.8%

Revenue & EPS history

ITT · Revenue · Quarterly

$690M

Q3 2021+16.6%vs Q3 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

ITT · $690M total across 3 segments · Q3 2021

  • Motion Technologies
    $332M+22.3%
  • Industrial Process
    $211M+8.6%
  • Connect & Control Technologies
    $147M+16.8%

Forward guidance

ITT raised its full-year 2021 guidance to reflect the strong third quarter results despite higher than anticipated headwinds from raw material costs, particularly in the Motion Technologies segment. We now expect earnings per share of $3.47 to $3.54, up 345% to 354%, and adjusted earnings per share of $4.01 to $4.06 per share, up 25% to 27%.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

+1.9%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+2.1%

Avg return

30 days after

65%

47 / 72 earnings

Positive

+17.4%

Q3 2019

Best reaction

-9.9%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.8%-2.8%-10.0%
Q4 2025+9.1%+8.3%+0.2%
Q3 2025+11.2%+5.5%+4.7%
Q1 2025+0.7%+3.6%+9.9%
Q4 2024-2.1%-2.6%-7.2%
Q3 2024+0.2%-2.8%+7.7%
Q2 2024-8.3%-8.8%-1.6%
Q1 2024-0.8%+4.1%+2.8%
Q4 2023-2.7%-4.9%+1.1%
Q3 2023+7.7%+6.8%+17.3%
Q2 2023+3.0%+2.6%+5.2%
Q1 2023+0.9%-1.3%-0.6%
Q4 2022-0.4%+2.5%-5.3%
Q3 2022+1.5%+3.2%+13.8%
Q2 2022+4.2%+3.8%-4.3%
Q1 2022+6.7%+0.3%+5.0%
Q4 2021-3.1%-7.5%-18.9%
Q3 2021+3.2%+6.5%-1.7%
Q2 2021+0.7%+1.3%-3.3%
Q1 2021+1.6%-4.6%-3.9%
Q4 2020+4.4%+8.6%+14.8%
Q3 2020-0.7%+0.0%+19.5%
Q2 2020+0.7%+1.2%+8.5%
Q1 2020-9.9%-9.0%+9.4%
Q4 2019-3.5%-10.2%-43.9%
Q3 2019+17.4%+15.5%+17.4%
Q2 2019-6.2%-5.9%-6.2%
Q1 2019+3.8%+3.0%-3.2%
Q4 2018+4.0%+3.4%-0.5%
Q3 2018+5.5%+7.4%+5.1%
Q2 2018+10.1%+8.8%+4.8%
Q1 2018+5.9%+6.7%+7.6%
Q4 2017-0.3%+0.9%-0.8%
Q3 2017+9.7%+10.2%+14.4%
Q2 2017+2.2%+1.1%+0.1%
Q1 2017-1.3%-4.5%-9.2%
Q4 2016+2.6%-0.6%-2.3%
Q3 2016-0.5%+4.4%+20.7%
Q2 2016+5.2%+7.2%+16.1%
Q1 2016-8.5%
Q4 2015+6.2%
Q3 2015+2.2%
Q2 2015-2.1%
Q1 2015+2.9%
Q4 2014+4.5%
Q3 2014+2.7%
Q2 2014-1.9%
Q1 2014+2.0%
Q4 2013+3.3%
Q3 2013+9.2%
Q2 2013+10.1%
Q1 2013+3.3%
Q4 2012+4.3%
Q3 2012+3.4%
Q2 2012+12.0%
Q1 2012+0.0%
Q4 2011+6.5%
Q3 2011+2.9%
Q2 2011-4.7%
Q1 2011+1.4%
Q4 2010+1.1%
Q3 2010-0.3%
Q2 2010-1.5%
Q1 2010-3.3%
Q1 2009+1.9%
Q4 2007+1.9%
Q4 2009+1.9%
Q3 2009-0.1%
Q3 2008-0.1%
Q4 2008-1.7%
Q2 2009-1.7%
Q2 2008-1.7%

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