ITT Inc. Updates 2022 Guidance

(RTTNews) - ITT Inc. (ITT) said it now expects segment operating margin of approximately 17.0%, and adjusted segment operating margin of approximately 17.6%, free cash flow of $135 million to $165 million, EPS of $4.20 to $4.30, and adjusted EPS of $4.35 to $4.45, for the full year. The company noted that its revised guidance for segment operating margin, EPS and free cash flow reflects the impact of continued disruptions in the global supply chain and continued cost inflation which it anticipates will persist throughout 2022.

ITT Inc. now expects revenue growth of 8%, and 12% on an organic basis driven by the strong year-to-date performance. The company said the revenue guidance assumes a continued reduction in sales in Russia stemming from the war in Ukraine, which it estimates will impact revenue by approximately $85 million for the full year.

Excluding the impact of restructuring and other items, third quarter adjusted earnings per share was $1.20, up 21% from prior year driven primarily by higher segment operating income and benefits from share repurchases. Analysts on average had expected the company to earn $1.17 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Earnings came in at $102.4 million, or $1.23 per share compared with $87.5 million, or $1.01 per share, prior year. Revenue increased to $753.6 million from $689.6 million, prior year. The company reported a year-over-year revenue increase of 9%, up 15% on an organic basis, primarily driven by short-cycle and pump project growth in Industrial Process, demand in connectors and components in Connect & Control Technologies, Friction OE growth in Motion Technologies and pricing recovery across all segments.

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