Fortive Corp (FTV, Financial) announced its financial results for the third quarter of 2023 on October 25, 2023. The company reported a Q3 revenue growth of 2.6%, reflecting growth in all segments. The operating margin increased by 220 basis points to 20%, driven by strong gross margin expansion and productivity initiatives. The company's GAAP Diluted EPS was $0.61, up 15%, and the Adjusted Diluted EPS was $0.85, up 8%.
Financial Performance
For the third quarter, Fortive Corp (FTV, Financial) reported net earnings of $218 million. The adjusted net earnings for the same period were $302 million. The company's revenues increased by 2.6% year-over-year to $1.49 billion, which included core revenue growth of 2.5%. The company's software businesses demonstrated resilience with an annual recurring revenue growth of 9%.
Company's Outlook
For the fourth quarter of 2023, Fortive anticipates revenue of approximately $1.6 billion, diluted net earnings per share of $0.61 to $0.64, and adjusted diluted net earnings per share of $0.92 to $0.95. For the full year 2023, Fortive anticipates revenue of approximately $6.0 billion to $6.1 billion, diluted net earnings per share of $2.30 to $2.33, and adjusted diluted net earnings per share of $3.37 to $3.40.
Financial Tables
In the third quarter, the Intelligent Operating Solutions segment reported sales of $644.3 million and an operating profit of $156.8 million. The Precision Technologies segment reported sales of $530.6 million and an operating profit of $139.3 million. The Advanced Healthcare Solutions segment reported sales of $319.6 million and an operating profit of $26.6 million.
As of September 29, 2023, Fortive Corp (FTV, Financial) had total assets of $15,664.4 million, total liabilities of $5,580.8 million, and total stockholders' equity of $10,083.6 million.
Company's Performance
James A. Lico, President and Chief Executive Officer, stated, “Our results in the third quarter once again reflected the durability of our portfolio. We saw core growth in all segments and our teams drove substantial improvement in margins, earnings, and free cash flow. Our strategy is delivering results, reflecting the strength of our brands and their leading positions across our customers’ critical connected workflows, reinforcing confidence in our full-year outlook and ability to compound earnings and cash flow to create sustainable, long-term value.”
