Fortive Surpasses Third Quarter Earnings Forecasts, Raises Year-End Outlook

EVERETT, Wash. - Industrial technology company Fortive Corporation (NYSE: FTV) reported third-quarter earnings that exceeded expectations on Wednesday, driven by strong performance in its business segments. The company also raised its full-year earnings forecast.

Fortive reported adjusted earnings of $0.97 per share for the third quarter, surpassing analysts' estimates of $0.93. Revenue reached $1.54 billion, slightly below the consensus estimate of $1.55 billion but representing a 3% year-over-year increase.

President and CEO James A. Lico stated, "Fortive delivered strong operational performance in the third quarter, achieving better-than-expected earnings and free cash flow."

The company recorded a 1.1% growth in core revenue during the third quarter. The Smart Operations Solutions and Advanced Healthcare Services segments demonstrated robust recurring revenue growth, while Precision Technologies achieved double-digit order growth.

Fortive has raised its adjusted earnings forecast for 2024 to a range of $3.84 to $3.87 per share, up from a previous midpoint estimate of $3.82. The company now expects full-year revenue to be in the range of $6.24 to $6.26 billion.

For the fourth quarter, Fortive anticipates adjusted earnings of $1.11 to $1.14 per share on revenue of $1.63 to $1.65 billion.

The company also noted progress in its plan to spin off into two independent publicly traded companies, with final approvals pending until the fourth quarter of 2025.

Fortive's adjusted operating profit margin increased by 90 basis points year-over-year to 26.8% in the third quarter. Free cash flow rose by 12.4% to reach $431.2 million.