NYSE$ITT

ITT Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

ITT reported Q4 2021 earnings, with adjusted EPS of $1.06 and initiated 2022 guidance.

ITT reported a revenue decrease of 3% year-over-year in Q4 2021, driven by global supply chain disruptions and a tough prior year comparison related to auto OE demand. However, adjusted earnings per share increased by 5% compared to the prior year, driven by higher segment operating income, share repurchases, and a lower effective tax rate.

  • Q4 orders were up 9% (10% organic), driven by strong demand across Industrial Process and Connect & Control.
  • Q4 segment operating margin was 17.9%, up 100 bps; adjusted segment operating margin was 18.2%, up 130 bps, driven by strong pricing and productivity.
  • ITT initiated 2022 EPS guidance of $4.22 to $4.66, up 16% to 28%; adjusted EPS guidance of $4.30 to $4.70, up 11% at the midpoint.
  • ITT announced a 20% increase in the quarterly dividend to $0.264 per share.

Headline financials

Total Revenue

$685M

Previous: $709M-3.3%
EPS (adj)

$1.06

Previous: $1.01+5.0%
Total Organic Growth

-2.1%

Previous: -3.9%+46.2%
Motion Technologies Organic Growth

-7.2%

Previous: 10.3%-169.9%
Industrial Process Organic Growth

-3.9%

Previous: -10.4%+62.5%
Connect & Control Technologies Organic Growth

14.3%

Previous: -20.9%+168.4%
Free Cash Flow

$83.7M

Previous: $102M-17.7%
Net Income

$107M

Previous: -$13.5M+894.8%
Operating Income

$113M

Previous: $159M-29.0%
Gross Profit

$224M

Previous: $219M+2.4%
Cash & Equivalents

$648M

Previous: $860M-24.7%
Total Assets

$3.57B

Previous: $4.28B-16.6%
Stock-Based Comp

$4.7M

Previous: $3.7M+27.0%

Revenue & EPS history

ITT · Revenue · Quarterly

$685M

Q4 2021-3.3%vs Q4 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

ITT · $686M total across 3 segments · Q4 2021

  • Motion Technologies
    $324M-8.1%
  • Industrial Process
    $216M-5.3%
  • Connect & Control Technologies
    $146M+13.0%

Forward guidance

ITT anticipates continued disruptions in the global supply chain stemming from labor shortages, supplier delays, and raw material inflation, which we anticipate will persist through at least the first half of 2022.

Tailwinds

  • Revenue growth of 7% to 9%, or up 9% to 11% on an organic basis
  • Segment operating margin of 17.5% to 18.4%, and adjusted segment operating margin of 17.6% to 18.5%, up 40 to 130 bps
  • Earnings per share of $4.22 to $4.66
  • Adjusted earnings per share of $4.30 to $4.70 per share, up 6% to 16%
  • Free cash flow of $300 million to $325 million, representing free cash flow margin of 10% to 11% for the full year

Headwinds

  • Continued disruptions in the global supply chain stemming from labor shortages
  • Supplier delays
  • Raw material inflation
  • Global uncertainty from the pandemic
  • Labor shortages and inflationary pressure

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 Q4 2021

Historical avgQ4 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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