EVERETT, Wash. - Fortive Corporation (NYSE: NYSE:FTV) today revealed a strong financial performance for the fourth quarter and the full year of 2023, surpassing previous expectations. The company's operational prowess, driven by the Fortive Business System (FBS), has been credited for the successful results, which include a 4% increase in total revenue for the fourth quarter, amounting to $1.58B, and a 3% core revenue growth.
For the same period, GAAP diluted earnings per share (EPS) rose by 17% to $0.75, while adjusted diluted EPS climbed by 11% to $0.98. Operating cash flow reported a significant increase to $447M, with free cash flow reaching $413M, marking a 56% rise over the past two years.
The full-year figures were also positive, with a 4% year-over-year revenue increase to $6.07B, including a 5% core revenue growth. Net earnings for the year stood at $866M, with adjusted net earnings hitting $1.2B. The diluted net earnings per share for the full year reached $2.43, and the adjusted figure was $3.43.
James A. Lico, President and CEO of Fortive, expressed confidence in the company's strategy and its consistent and profitable growth. He highlighted the company's focus on operational and commercial success, which has led to record margins and accelerated returns on investments.
Looking ahead, Fortive anticipates revenues for the first quarter of 2024 to be around $1.5B, with diluted net earnings per share between $0.44 to $0.47 and adjusted diluted net earnings per share ranging from $0.77 to $0.80. For the full year 2024, the company projects revenues of approximately $6.4B to $6.5B, with GAAP diluted EPS expected to be between $2.58 to $2.70, and adjusted diluted EPS forecasted to be in the range of $3.73 to $3.85.
Recent developments include the acquisition of EA Elektro-Automatik (EA) Holding GmbH on January 3, 2024, which is expected to enhance Fortive's position in electronic test and measurement solutions. Additionally, the company plans to optimize its real estate footprint within the Precision Technologies Segment, anticipating proceeds of approximately $90M from a transaction expected to close in the first half of 2024.
Fortive also reported that one of its subsidiaries, Gems Setra, made incorrect representations regarding its status as a small business concern for certain contracts awarded by the Defense Logistics Agency. The company has voluntarily notified relevant authorities and does not expect this matter to materially affect its financial condition or results of operations.
This report is based on a press release statement from Fortive Corporation.
InvestingPro Insights
Fortive Corporation's (NYSE: FTV) latest earnings report underscores its financial resilience and growth trajectory. In light of this, InvestingPro provides a deeper dive into the company's financial health and market performance. With a robust Piotroski Score of 9, Fortive exhibits strong fiscal stability and operational efficiency. The company's gross profit margins are particularly impressive, standing at 58.87% for the last twelve months as of Q3 2023, which reflects its ability to maintain profitability amidst competitive pressures.
InvestingPro data also highlights a market capitalization of $26.25B, with a Price/Earnings (P/E) ratio of 31.87 and a Price/Earnings to Growth (PEG) ratio of 1.51, indicating the company's valuation in relation to its expected earnings growth. Furthermore, Fortive's stock is characterized by low price volatility, which may appeal to investors seeking stability in their portfolios.
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