STAMFORD, Conn. - ITT Inc. (NYSE: NYSE:ITT) has surpassed analyst expectations for the first quarter, reporting an adjusted EPS of $1.42, which is $0.06 higher than the estimate of $1.36. The company's revenue also exceeded forecasts, reaching $910.6 million against the anticipated $883.21 million.
The company's financial performance in the first quarter showcased a robust 14% revenue growth, out of which 9% was organic, surpassing the $900 million mark. This growth was primarily fueled by increased demand in connectors, aerospace and defense components, and gains in Friction and rail. The acquisitions of Svanehøj and Micro-Mode contributed 5% to the total revenue growth, despite a 1% headwind from foreign currency translation.
Operating income saw a significant 20% increase compared to the previous year, reaching $149 million, with adjusted operating income growing by 22.8%. ITT attributes these results to higher sales volumes and productivity gains, although partially offset by increased labor and overhead costs and strategic investments for capacity expansion.
The company's EPS growth was notable at 12%, with a 21% increase in adjusted EPS, driven by higher sales volumes and productivity. The difference between reported and adjusted EPS is primarily due to acquisition-related costs and restructuring charges.
In a statement, ITT's CEO and President Luca Savi emphasized the continued momentum from 2023 into Q1 of 2024, with nearly a billion dollars in new orders, record aerospace orders, and strong demand in connectors and Friction and rail. He also noted the company's investment in expanding pump capabilities and capacity to support new Friction awards, which he believes will strengthen ITT's differentiation and profitable growth prospects.
Looking ahead, ITT has raised its full-year guidance for 2024, now expecting revenue growth of 9% to 12%, with organic growth of 4% to 7%. The company anticipates operating margins between 16.9% to 17.5% and adjusted operating margins of 17.1% to 17.7%. The full-year EPS guidance has been set at $5.65 to $5.90, an 8% to 13% increase. Free cash flow expectations remain unchanged at $435 million to $475 million, representing a 12% to 13% margin for the full year.
The company has declared a quarterly dividend of $0.319 per share, payable on July 1, 2024, to shareholders of record as of June 3, 2024.
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