Engineered components manufacturer for critical industries ITT Inc. (NYSE: ITT) will be reporting results this Wednesday morning. Here’s what to look for.
ITT beat analysts’ revenue expectations by 2.6% last quarter, reporting revenues of $972.4 million, up 7.3% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ organic revenue estimates.
Is ITT a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting ITT’s revenue to grow 10% year on year to $974.1 million, improving from the 7.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.67 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. ITT has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1% on average.
Looking at ITT’s peers in the industrial machinery segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Gorman-Rupp delivered year-on-year revenue growth of 2.8%, missing analysts’ expectations by 1%, and Graco reported revenues up 4.7%, falling short of estimates by 3%. Gorman-Rupp traded down 5.6% following the results while Graco’s stock price was unchanged.
Read our full analysis of Gorman-Rupp’s results here and Graco’s results here.
There has been positive sentiment among investors in the industrial machinery segment, with share prices up 3.8% on average over the last month. ITT’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $193.09 (compared to the current share price of $176.63).
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