Yahoo Finance Fortive Corporation Just Recorded A 16% EPS Beat: Here's What Analysts Are Forecasting Next
Shareholders might have noticed that Fortive Corporation (NYSE:FTV) filed its first-quarter result this time last week. The early response was not positive, with shares down 5.0% to US$76.21 in the past week. Revenues were US$1.5b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$0.58 were also better than expected, beating analyst predictions by 16%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
See our latest analysis for Fortive
Following the latest results, Fortive's 19 analysts are now forecasting revenues of US$6.43b in 2024. This would be a satisfactory 4.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 5.3% to US$2.69. Before this earnings report, the analysts had been forecasting revenues of US$6.48b and earnings per share (EPS) of US$2.69 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$88.38. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Fortive, with the most bullish analyst valuing it at US$98.00 and the most bearish at US$75.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Fortive's growth to accelerate, with the forecast 6.6% annualised growth to the end of 2024 ranking favourably alongside historical growth of 3.0% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.5% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Fortive to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$88.38, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Fortive analysts - going out to 2026, and you can see them free on our platform here.
You still need to take note of risks, for example - Fortive has 1 warning sign we think you should be aware of.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
