The ITT Inc. (NYSE:ITT) Second-Quarter Results Are Out And Analysts Have Published New Forecasts

Shareholders might have noticed that ITT Inc. (NYSE:ITT) filed its quarterly result this time last week. The early response was not positive, with shares down 7.8% to US$130 in the past week. ITT reported in line with analyst predictions, delivering revenues of US$906m and statutory earnings per share of US$1.45, suggesting the business is executing well and in line with its plan. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on ITT after the latest results.

View our latest analysis for ITT

After the latest results, the eleven analysts covering ITT are now predicting revenues of US$3.60b in 2024. If met, this would reflect a modest 3.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 8.0% to US$5.73. In the lead-up to this report, the analysts had been modelling revenues of US$3.65b and earnings per share (EPS) of US$5.75 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of US$157, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on ITT, with the most bullish analyst valuing it at US$174 and the most bearish at US$150 per share. This is a very narrow spread of estimates, implying either that ITT is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that ITT's rate of growth is expected to accelerate meaningfully, with the forecast 8.0% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 5.1% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.2% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that ITT is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$157, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for ITT going out to 2026, and you can see them free on our platform here..

You can also see whether ITT is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com