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Investing.com -- Ralliant Corporation (NYSE:RAL) reported second quarter adjusted earnings per share of $0.67 on revenue of $503 million, which declined 6% YoY. The company’s shares rose 2.2% following the announcement, as investors responded positively to its third quarter guidance that exceeded analyst expectations.
For the third quarter, Ralliant forecasts revenue between $513 million and $527 million, above the analyst consensus of $501.6 million. The company also expects adjusted earnings per share of $0.54 to $0.60, compared to the consensus estimate of $0.56.
The second quarter saw mixed performance across Ralliant’s business segments. The Sensors & Safety Systems division reported revenue of $311 million, up 1% YoY and 6% sequentially, driven by robust demand in utilities and defense markets. However, the Test & Measurement segment struggled with revenue of $193 million, down 15% YoY, though it did increase 2% sequentially.
"At the end of June we successfully completed our separation from Fortive (NYSE:FTV), achieving an important milestone in Ralliant’s journey," said Tami Newcombe, President and CEO. "We continue to experience strong order demand in Sensors & Safety Systems as customers continue to invest in grid modernization and defense programs."
To address challenges, the company announced a Cost Savings Program targeting $9-11 million in annualized savings, with $4 million expected by the fourth quarter of 2025. The program focuses on mitigating spin-related costs within the Test & Measurement segment.
Ralliant generated $86 million in operating cash flow and $74 million in free cash flow during the quarter. The company’s board authorized a $200 million share repurchase program and declared a quarterly dividend of $0.05 per share, payable on September 23.
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