NYSE$ITT

ITT Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported strong third quarter with profitable growth and margin expansion, driven by strength across all segments and strategic acquisitions.

ITT Inc. reported an 8% increase in revenue (6% organic) and a 46% increase in EPS to $1.96. Adjusted EPS increased by 7% to $1.46. The company is raising the midpoint of its full year EPS guidance due to continued outperformance.

  • Orders grew by 17% (14% organic) driven by pump project awards, rail share gains, and connectors demand.
  • Revenue increased by 8% (6% organic) driven by strength across all segments.
  • Operating margin expanded by 610 basis points to 23.5%, including a $48 million preliminary gain on the divestiture of Wolverine Advanced Materials.
  • EPS grew by 46% primarily driven by the gain on the Wolverine divestiture; adjusted EPS grew by 7% driven by pricing actions, volume, and productivity.

Headline financials

Total Revenue

$885M

Previous: $822M+7.7%
EPS

$1.96

Previous: $1.37+43.1%
Operating Margin

23.6%

No prior period
Adjusted Operating Margin

18.3%

No prior period
Free Cash Flow Margin

9.9%

No prior period
Capital Expenditures

-$36.6M

Previous: -$22.2M-64.9%
Free Cash Flow

$161M

Previous: $111M+45.4%
Net Income

$161M

Previous: $111M+45.4%
Operating Income

$208M

Previous: $143M+45.3%
Gross Profit

$314M

Previous: $279M+12.4%
Cash & Equivalents

$461M

Previous: $431M+7.0%
Total Assets

$4.94B

Previous: $3.8B+30.0%
R&D Expense

$28.6M

No prior period
Stock-Based Comp

$6.1M

Previous: $5M+22.0%

Revenue & EPS history

ITT · Revenue · Quarterly

$885M

Q3 2024+7.7%vs Q3 2023
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

ITT · $823M total across 3 segments · Q3 2023

  • Motion Technologies
    $360M+5.1%
  • Industrial Process
    $280M+12.6%
  • Connect & Control Technologies
    $184M+12.7%

Forward guidance

The company is raising its full-year revenue and operating margin guidance above the previous midpoint, while also raising the midpoint of its adjusted EPS outlook despite the incremental interest expense and purchase price amortization from the kSARIA acquisition.

Tailwinds

  • Expect revenue growth of 10% to 12%, up 5% to 7% on an organic basis.
  • Expect operating margin of 18.4% to 18.7% and adjusted operating margin of 17.4% to 17.7%, up 50 to 80 bps (up 130 to 160 bps excluding acquisition dilution).
  • Expect full year EPS of $6.16 to $6.22
  • Expect adjusted EPS of $5.80 to $5.86, up 11% to 12% for the full year.
  • Expect free cash flow of ~$450 million, representing ~12% free cash flow margin for the full year.

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 2024

Historical avgQ3 2024

+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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