NYSE$ITT

ITT Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

ITT's Q4 2022 performance was driven by pricing recovery and higher volume, resulting in strong revenue and EPS growth.

ITT Inc. reported a 13% year-over-year revenue increase in Q4 2022, with a 17% increase on an organic basis. EPS increased by 16% to $1.39, and adjusted EPS increased by 22% to $1.29. The company overcame cost inflation and foreign currency headwinds to deliver on its original revenue and adjusted EPS guidance.

  • Revenue increased by 13% (17% organic) due to pricing recovery and higher volume.
  • Orders grew by 8% (12% organic), driven by connectors, aerospace and defense components, and pump projects.
  • EPS increased by 16% (22% adjusted) due to price recovery, productivity, and the Habonim contribution.
  • The company initiated 2023 EPS guidance up 4% at the midpoint (adjusted EPS up 7% at the midpoint).

Headline financials

Total Revenue

$775M

Previous: $685M+13.0%
EPS (adj)

$1.29

Previous: $1.06+21.7%
Total Organic Growth

17.5%

Previous: -2.1%+933.3%
Motion Technologies Organic Growth

12.1%

Previous: -7.2%+268.1%
Industrial Process Organic Growth

26.7%

Previous: -3.9%+784.6%
Connect & Control Technologies Organic Growth

16.2%

Previous: 14.3%+13.3%
Free Cash Flow

$132M

Previous: $83.7M+58.1%
Net Income

$116M

Previous: $107M+8.2%
Operating Income

$151M

Previous: $113M+33.4%
Gross Profit

$248M

Previous: $224M+10.9%
Cash & Equivalents

$561M

Previous: $648M-13.3%
Total Assets

$3.78B

Previous: $3.57B+6.0%
Stock-Based Comp

$4.5M

Previous: $4.7M-4.3%

Revenue & EPS history

ITT · Revenue · Quarterly

$775M

Q4 2022+13%vs Q4 2021
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

ITT · $776M total across 3 segments · Q4 2022

  • Motion Technologies
    $330M+2.1%
  • Industrial Process
    $281M+29.8%
  • Connect & Control Technologies
    $165M+12.9%

Forward guidance

ITT expects revenue growth of 7% to 9%, up 6% to 8% on an organic basis; segment operating margin of 17.0% to 17.8%, and adjusted segment operating margin of 17.3% to 18.1%, up 10 to 90 bps; EPS of $4.38 to $4.78, and adjusted EPS of $4.55 to $4.95, representing growth of 7% at the midpoint; and free cash flow of $350 million to $400 million, representing free cash flow margin of 11% to 12% for the full year 2023.

Tailwinds

  • Revenue growth of 7% to 9%
  • Organic revenue growth of 6% to 8%
  • Segment operating margin of 17.0% to 17.8%
  • Adjusted segment operating margin of 17.3% to 18.1%
  • Free cash flow of $350 million to $400 million

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 2022

Historical avgQ4 2022

+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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