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Investing.com -- Fortive Corporation (NYSE:FTV) reported first-quarter earnings that met expectations but fell short on revenue, while lowering its full-year guidance. The company’s shares dropped 4.2% following the announcement.
The technology solutions provider reported adjusted earnings per share of $0.85 for Q1 2025, in line with analyst estimates. However, revenue came in at $1.47 billion, missing the consensus forecast of $1.49 billion and representing a 3% YoY decrease, including a 2% core revenue decline.
Fortive updated its full-year 2025 guidance, now expecting adjusted EPS of $3.80 to $4.00, down from the previous analyst consensus of $4.01. The company cited moderated demand in its Precision Technologies segment and the anticipated net impact of tariffs as reasons for the adjustment.
James A. Lico, President and CEO, commented on the results: "Our first quarter results reflect our continued ability to adapt and respond to the current dynamic macroeconomic environment. We delivered core growth in our Intelligent Operating Solutions and Advanced Healthcare Solutions segments, supported by solid demand for our industry-leading portfolio of safety and productivity solutions."
The company’s Precision Technologies segment experienced delays in customer investments due to increased geopolitical and macroeconomic uncertainty. However, Fortive reported strong demand for utility monitoring and defense & space solutions.
Despite the challenges, Fortive achieved a 20 basis point YoY improvement in adjusted operating profit margin, reaching 25.3%. The company also reported strong cash flow generation, with trailing twelve-month operating cash flow up 5% YoY.
Fortive reiterated its target to complete the separation of its Precision Technologies segment, to be named Ralliant, by the end of the second quarter of 2025, subject to various conditions and approvals.
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