In This Article:
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Revenue Growth: 3% overall growth in Q3.
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Adjusted EPS Growth: 14% increase in Q3.
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Free Cash Flow Growth: 12% increase in Q3.
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Adjusted Operating Margins: Record margins with 60% incrementals in Q3.
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Adjusted EPS Year-to-Date: Up 11%.
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Free Cash Flow Year-to-Date: Up 13%.
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Intelligent Operating Solutions Revenue Growth: 3% in Q3.
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Advanced Healthcare Solutions Revenue Growth: 8% in Q3.
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Precision Technologies Revenue: Flat in Q3 with a core decline of almost 4%.
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Share Repurchases: Approximately 4 million shares bought back in Q3, totaling 6 million year-to-date.
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Q4 Revenue Growth Guidance: Approximately 3% with 1% core growth.
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Q4 Adjusted EPS Guidance: $1.11 to $1.14.
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Full Year Adjusted EPS Guidance: $3.84 to $3.87, up 12% to 13% year-over-year.
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Full Year Free Cash Flow Guidance: Approximately $1.4 billion.
Release Date: October 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Fortive Corp (NYSE:FTV) delivered strong third-quarter results with 14% adjusted EPS growth and 12% free cash flow growth on 3% revenue growth.
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The company reported double-digit orders growth in its Precision Technologies segment, indicating positive momentum.
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Advanced Healthcare Solutions expanded adjusted operating margins by over 300 basis points on 8% revenue growth, driven by strong capital and equipment sales.
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Fortive Corp (NYSE:FTV) accelerated its share repurchase program, buying back approximately 4 million shares in the third quarter.
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The company is on track with its plan to spin off the Precision Technologies segment, which is expected to enhance shareholder value.
Negative Points
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Revenue in the Precision Technologies segment was flat with a core decline of almost 4%, indicating challenges in this area.
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The company experienced shipment delays, shifting approximately $15 million in shipments out of the quarter.
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There were customer spending delays, particularly among Gordian state and local customers facing budget and macroeconomic uncertainties.
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Growth in Asia was impacted by weak demand in China, with revenue down high single digits in the region.
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Fortive Corp (NYSE:FTV) anticipates ongoing geopolitical and macro uncertainties, which could affect future performance.
Q & A Highlights
Q: Can you confirm the expected core growth rates for each segment in Q4? A: Yes, for the fourth quarter, AHS is expected to grow mid- to high single digits, PT is anticipated to be down low single digits, and IOS is projected to grow low single digits. (Elena Rosman, VP of Investor Relations)