ITT's 1Q Results Surpass Forecasts; Guidance Maintained
Conglomerate ITT (NYSE:ITT) disclosed a 98% plunge in first-quarter earnings on Friday due to spinoff costs, but the company’s adjusted profits easily surpassed Wall Street’s expectations.
White Plains, N.Y.-based ITT, which broke up into three different companies last year, said it earned $3 million, or 3 cents a share, last quarter, compared with a profit of $121 million, or $1.31 a share, a year earlier.
Excluding one-time items like breakup costs, it earned 39 cents a share, surpassing the Street’s view of 32 cents.
Revenue rose 8.3% to $577 million, compared with consensus calls for $554 million. Emerging market revenue soared 22%, while North American sales were up 11%.
“Despite overall market softness in Western Europe, we drove strong growth globally, particularly in North America, Asia and the Middle East,” CEO Denise Ramos said in a statement. “We believe that going forward our business model will position us well to continue building our track record of growth and value creation.”
Looking ahead, ITT reaffirmed its guidance for 2012 non-GAAP EPS of $1.62 to $1.72. The midpoint of that range, $1.67, would match the Street’s view. Revenue is seen rising 5% to 7%.
Shares of ITT jumped 1.95% to $22.44 Friday morning, putting them on pace to extend their 2012 rally of 16%.
Meanwhile, ITT Exelis (NSYE:XLS), which was spun off from ITT in October, released stronger-than-expected first-quarter results and maintained its full-year guidance.