May 25, 2017 - 8:34 AM EDT
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Post Earnings Coverage as ITT's Quarterly Revenue Numbers Grew 3%; Adjusted EPS Gained 8%

Upcoming AWS Coverage on Middleby Corp. Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 25, 2017 / Active Wall St. announces its post-earnings coverage on ITT Inc. (NYSE: ITT). The Company announced its first quarter fiscal 2017 financial results on May 08, 2017. The supplier of parts and services to a variety of industries outperformed top- and bottom-line expectations. Register with us now for your free membership at:

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One of ITT Inc.'s competitors within the Diversified Machinery space, The Middleby Corp. (NASDAQ: MIDD), released its Q1 2017 earnings results on Tuesday, May 09, 2017. AWS will be initiating a research report on Middleby in the coming days.

Today, AWS is promoting its earnings coverage on ITT; touching on MIDD. Get our free coverage by signing up to:

http://www.activewallst.com/register/

Earnings Reviewed

On a GAAP basis, ITT delivered revenue of $625.8 million, up 3% compared to revenue of $609.1 million in Q1 2016, and an organic revenue (total revenue excluding foreign exchange, acquisition and divestiture impacts) increase of 2%, as growth in transportation was partially offset by project declines in oil and gas, reflecting weak backlog entering the year. Organic orders grew 7% in the reported quarter primarily due to a large oil and gas project win and significant automotive share gains in Europe and China. The Company's revenue numbers surpassed analysts' consensus of $603.4 million.

During Q1 2017, ITT's GAAP segment operating income increased 9% and adjusted segment operating income increased 3%, reflecting incremental restructuring benefits, higher volumes and improved productivity. These gains were partially offset by $4 million of unfavorable foreign exchange, higher commodity costs and strategic investments to support continued long-term automotive platform wins.

ITT's GAAP EPS increased $0.10 on a y-o-y basis to $0.52 and adjusted EPS, which excludes special items, increased $0.05 to $0.64, as segment operating income growth, favorable corporate costs, and improved efficiency were partially offset by $1 million of unfavorable impacts from foreign exchange. The Company's earnings numbers surpassed Wall Street's expectations of $0.60 per share.

Segment Results

During Q1 2017, IIT's Industrial Process segment's revenue fell 11% to $186 million, reflecting growth in short-cycle baseline pumps and service that was more than offset by large project declines, primarily in oil and gas due to weak backlog, as well as slower aftermarket parts activity.

Industrial Process segment's GAAP operating income decreased 19% to $7 million, and adjusted segment operating income decreased 18% to $10 million. Both measures primarily reflect lower project volumes across key markets, increased negative impacts from pump projects with a high degree of engineering and manufacturing complexity, and $1 million of unfavorable foreign exchange, which were partially offset by incremental restructuring benefits and improved operational execution.

ITT's Motion Technologies segment's total revenue increased 12% to $287 million, and organic revenue increased 10%, reflecting significant share gains and market growth in automotive brake pads in Europe and China, improved aftermarket, and strength in sealing solutions at Wolverine. The segment's total revenue includes $8 million of unfavorable foreign exchange and incremental revenue of $14 million from the acquisition of Axtone Railway Components.

The segment's GAAP operating income increased 8% to $55 million, and adjusted segment operating income increased 5% to $56 million. Both increases reflect strong volume growth, partially offset by commodity costs, pricing pressures, $2 million of unfavorable foreign exchange, and $3 million of strategic investments to support continued long-term platform wins in North America.

ITT's Connect and Control Technologies total revenue increased 6% to $153 million, while organic revenue increased 7% on a y-o-y basis. Both increases reflect stronger general industrial, defense, and oil and gas connector activity. The segment's GAAP operating income increased 32% to $16 million and adjusted segment operating income increased 14% to $18 million.

Dividend

On May 11, 2017, ITT's Board of Directors declared Q2 2017 cash dividend of $0.128 per share on the Company's outstanding stock. The cash dividend will be payable on July 03, 2017, to shareholders of record as of the close of business on June 12, 2017.

Guidance

ITT reiterated its previously announced 2017 full-year revenue guidance in the range of down 2% to up 2% versus the prior year, and it is raising the midpoint of its previous GAAP and adjusted EPS guidance by $0.05.

Stock Performance

ITT Inc.'s share price finished yesterday's trading session at $39.00, marginally up 0.08%. A total volume of 674.29 thousand shares exchanged hands, which was higher than the 3 months average volume of 545.65 thousand shares. The stock has rallied 10.36% in the past twelve months. Furthermore, since the start of the year, shares of the Company have gained 1.11%. The Company's shares are trading at a PE ratio of 18.36 and have a dividend yield of 1.31%. At Wednesday's closing price, the stock's net capitalization stands at $3.45 billion.

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Source: ACCESSWIRE (May 25, 2017 - 8:34 AM EDT)

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