Gold prices steady ahead of Fed decision; weekly weakness noted
STAMFORD, Conn. - ITT Inc. (NYSE: ITT), a company rated "GOOD" by InvestingPro's Financial Health scoring system, has released preliminary unaudited financial results for its first quarter ending March 29, 2025, with orders reaching $1.0 billion, marking a 7% increase, and 2% organic growth primarily fueled by pump project and connectors awards. Despite the growth in orders, the company's revenue remained flat at over $900 million on both a GAAP and organic basis, following a robust 10.6% revenue growth in the previous year. Based on InvestingPro's Fair Value analysis, ITT currently appears slightly overvalued.
The company's operating margin stood at 16.5%, with an adjusted operating margin of 17.4%, affected by unfavorable foreign currency exchange rates. Earnings per share (EPS) are projected to be between $1.29 and $1.35, with adjusted EPS expected to be between $1.43 and $1.45. The company maintains a healthy gross profit margin of 34.4% and has demonstrated strong profitability with a return on equity of 20%. Want deeper insights? InvestingPro offers exclusive access to over 30 key financial metrics and expert analysis.
ITT also reported generating net cash from operating activities ranging from $107 million to $117 million and free cash flow between $70 million and $80 million for the quarter.
The company's Board of Directors previously approved a $1 billion share repurchase authorization, and as of the end of the first quarter, $875 million remained available. ITT plans to buy back up to an additional $500 million of its shares, subject to market conditions and regulatory limitations. The company has maintained dividend payments for 55 consecutive years, with a current dividend yield of 1.12% and impressive dividend growth of 21% over the last twelve months.
These preliminary financial results are based on a weighted average share count of 81.7 million shares and an anticipated effective tax rate of 22%. ITT cautioned that these figures are subject to change upon the completion of financial closing processes and adjustments.
ITT will provide more details and discuss its full-year outlook during an investor conference call scheduled for May 1 at 8:30 a.m. ET.
The company, known for manufacturing highly engineered critical components and customized technology solutions for the transportation, industrial, and energy markets, maintains a presence in over 35 countries with sales in approximately 125 countries. Analysts maintain a bullish outlook on ITT, with price targets ranging from $141 to $186 per share. For comprehensive analysis and additional ProTips, access the detailed ITT Research Report available exclusively on InvestingPro.
The information presented in this article is based on a press release statement from ITT Inc. and has not been independently verified. Investors are advised not to place undue reliance on this preliminary financial information.
In other recent news, ITT Inc. reported its fourth-quarter earnings, surpassing analyst expectations with an adjusted earnings per share of $1.50, compared to the consensus estimate of $1.48. However, its revenue for the quarter slightly missed expectations, coming in at $929 million against the anticipated $930.71 million. Despite this, the company experienced a 12% increase in revenue from the same quarter last year, driven by higher volume, pricing actions, and recent acquisitions. ITT also announced a 10% increase in its quarterly dividend, continuing its trend of annual dividend hikes.
In analyst updates, DA Davidson raised ITT's stock price target to $170, maintaining a Buy rating, citing the company's market outperformance and robust financial health. Conversely, KeyBanc Capital Markets adjusted its price target for ITT to $150, while maintaining an Overweight rating, reflecting a cautious yet optimistic stance on ITT's market challenges. KeyBanc highlighted the company's resilience in navigating risks in the automotive sector and international markets. Meanwhile, DA Davidson emphasized ITT's strong balance sheet, which supports internal investments and potential mergers and acquisitions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.