Fortive’s Analyst Meeting Review
RBC Capital analysts provided their key takeaways from Fortive Corporation (NYSE:FTV) Analyst Meeting, where it reaffirmed Q2/23 and full 2023 year guidance and provided achievable 2028 targets. Notably, the company targets double-digit CAGR for EPS and Free Cash Flow.
Its five core connected workflow strategies (85% of Fortive’s sales) should also benefit from multiple secular trends, including digitization, electrification, automation, and healthcare. M&A strategy was unchanged, with a bias toward bolt-ons.
Overall, the event showcased the company’s deep management bench along with an impressive number of Fortive’s product/services exhibits.
| Symbol | Price | %chg |
|---|---|---|
| 006405.KS | 231500 | 0.43 |
| 006400.KS | 387500 | 1.55 |
| 6861.T | 71130 | 3.49 |
| 009155.KS | 65700 | 1.37 |
Fortive Corporation Reports Weak Q4 Sales, Expects Strong Organic Growth in 2022
Fortive Corporation (NYSE:FTV) reported its Q4 results last week, with adjusted EPS coming in slightly below consensus estimates (after adjusting for tax), mainly driven by weak sales, which were 5% below the consensus estimate. Sales miss was the biggest surprise of the quarter.
Core growth was up just 1% due to COVID-related challenges. Software-enabled businesses showed double digits growth, and the company managed its margins well despite the environment.
The company provided its outlook for 2022, expecting EPS in the range of $3.00-$3.13, compared to the consensus estimate of $3.10 while anticipating strong organic growth of around 7.5%. Analysts at Berenberg Bank believe that the company is conservative on margins, which have room to expand in the second half of the year.
