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STAMFORD, Conn. - On Thursday, ITT Inc. (NYSE:ITT) reported second-quarter results that exceeded analyst expectations and raised its full-year outlook, driven by strong pump project shipments and aerospace demand.
The industrial manufacturer’s shares gained 1.50% in pre-market trading after the announcement.
The company posted adjusted earnings of $1.64 per share, beating the analyst consensus of $1.61, while revenue reached $972.4 million, surpassing estimates of $948.2 million. Revenue grew 7.3% year-over-year, with organic growth of 4.3%, primarily fueled by pump projects, aerospace and industrial connectors, automotive share gains, and pricing actions.
"ITT delivered a strong Q2, showcasing our differentiation through execution, innovation and M&A," said CEO Luca Savi. "Once again, we surpassed $1 billion of orders and entered Q3 with nearly $2 billion in backlog."
Operating income increased 10% to $175.1 million compared to the prior year, with operating margin expanding 40 basis points to 18.0%. The company’s adjusted operating margin rose 30 basis points to 18.4%, driven by productivity savings, pricing actions, and acquisitions, which helped offset higher material and labor costs.
Free cash flow for the quarter reached $137.3 million, up 2.1% from the previous year and 79% sequentially from the first quarter.
Based on its strong performance, ITT raised its full-year guidance, now expecting revenue growth of 5% to 7% (previously 5% to 7%) and adjusted EPS of $6.35 to $6.55 (previously $6.20 to $6.45), compared to the analyst consensus of $6.42.
The Industrial Process segment led growth with revenue increasing 7.6% to $355.9 million and operating margin expanding 140 basis points to 21.5%. The Connect & Control Technologies segment saw the largest revenue jump at 31.3%, reaching $251.9 million, though its operating margin contracted 70 basis points to 17.8% due to temporary acquisition amortization.
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