5 Revealing Analyst Questions From ITT's Q1 Earnings Call
ITT's first quarter saw a positive market response, as the company delivered flat sales of $913 million—exceeding Wall Street revenue expectations by a small margin. Management attributed stable performance to strong order momentum, especially in the Industrial Process segment and recent acquisitions. CEO Luca Savi highlighted that orders grew 7% overall, with notable contributions from the kSARIA and Svanehøj acquisitions, driving a record backlog. Despite headwinds from lower volumes in auto and aerospace and currency effects, Savi credited 'shop floor productivity and price' for supporting margins and noted record free cash flow in the quarter.
Is now the time to buy ITT? Find out in our full research report (it's free).
Revenue: $913 million vs analyst estimates of $907.8 million (flat year on year, 0.6% beat)
Adjusted EPS: $1.45 vs analyst estimates of $1.44 (0.8% beat)
Adjusted EBITDA: $196.5 million vs analyst estimates of $193.4 million (21.5% margin, 1.6% beat)
Management reiterated its full-year Adjusted EPS guidance of $6.30 at the midpoint
Operating Margin: 16.5%, in line with the same quarter last year
Organic Revenue was flat year on year (9.5% in the same quarter last year)
Market Capitalization: $12.18 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Scott Davis (Melius Research) asked if the surge in orders reflected pre-buying ahead of price increases. CEO Luca Savi replied that order growth was driven by long-term project wins and market share gains, not purchasing acceleration.
Mike Halloran (Baird) questioned how much pricing and FX contributed to updated guidance. CFO Emmanuel Caprais detailed that minor positive impacts from FX and share count were offset by higher tax rates and inflation, with acquisitions performing better than initially expected.
Vlad Bystricky (Citigroup) inquired about risk to Saudi project spending amid oil price declines. Savi said customer tone remains positive, with orders in oil and gas continuing to grow and market share gains offsetting external risks.
Jeff Hammond (KeyBanc Capital Markets) pressed on the company's ability to pass through tariff costs and the sourcing strategy. Savi explained that dual sourcing and price increases, especially on non-USMCA products, would mitigate tariff impacts without affecting EPS guidance.
Joe Ritchie (Goldman Sachs) asked about VIDAR's sales strategy and cross-selling potential. Savi clarified VIDAR operates as a separate business with its own sales force, though some sales incentives could leverage existing pump business relationships.
Looking ahead, the StockStory team will be monitoring (1) the pace at which VIDAR gains commercial traction and contributes to revenue, (2) the successful conversion of record project backlog into realized sales, and (3) the effectiveness of pricing and sourcing actions in offsetting tariff pressures. Progress on M&A execution and further innovation announcements will also be important milestones.
ITT currently trades at $154.78, up from $137.09 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it's free).
Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
2 hours ago
- Business Insider
XRP's $5+ Explosion Is Loading, Here's 3 Reasons Why It Could Detonate Any Day
XRP's prolonged sideways movement might just be the calm before the storm. Here's why bulls should be paying close attention. Confident Investing Starts Here: After four months of frustrating consolidation between $2.00 and $2.60, XRP may finally be gearing up for a decisive breakout. A confluence of bullish fundamentals, surging institutional interest, and key technical patterns is giving traders a strong case to keep their eyes on higher targets—possibly even in the $5 to $14 range. Let's unpack the three major signals pointing to a potential XRP surge. 1. Ripple's Aggressive Expansion Strategy Ripple is not just sitting back during XRP's sideways grind, it's building aggressively. The $1.25 billion acquisition of prime brokerage Hidden Road is a game-changer. The move reinforces Ripple's ambitions to become a major liquidity hub for institutions. What's even more notable is Ripple's plan to integrate its upcoming RLUSD stablecoin directly into Hidden Road's services, effectively tying ecosystem utility directly to XRP infrastructure. Ripple CTO David Schwartz confirmed that the M&A pipeline is active: 'We have multiple potential acquisitions in various stages, from early stages to late stages.' These aren't just vanity acquisitions either. Ripple's ongoing efforts with Metaco, Standard Custody, and now Wormhole integration signal an intent to turn the XRP Ledger into a cross-chain DeFi powerhouse. XRPL's upcoming upgrades, especially around programmability and a new lending protocol, mirror Ethereum's evolution and lay the groundwork for native DeFi use cases. Combined, these moves could significantly expand demand for XRP as a base asset. 2. CME Futures Volume Signals Growing Institutional Appetite XRP is now playing in the big leagues. Since their launch on May 19, CME Group's XRP futures have already clocked over $542.8 million in trading volume. On day one alone, trading reached $19.3 million, spanning 15 firms and four major retail platforms. Importantly, nearly half of these participants are non-U.S. traders, a key signal of global appetite. 'The introduction of XRP futures has rapidly demonstrated significant market interest and widespread participation,' noted CME Group. High derivatives volume often precedes large spot price movements, especially when accompanied by expectations of a spot ETF. And right now, XRP is among the leading candidates. Polymarket betting odds put the chance of an XRP ETF approval before year-end at 76%. An ETF approval would unlock new flows from institutional allocators—many of whom won't touch crypto until it's wrapped in an ETF wrapper. 3. Technicals Align for a Classic Bull Breakout Crypto analyst XForceGlobal has flagged a compelling technical setup. According to his analysis, XRP recently bounced from the 0.618 Fibonacci level near $2.00, a textbook retracement that often precedes a new leg higher. He sees this as part of a larger Elliott Wave structure targeting $5 in the short term, and $20-$30 over the cycle. Meanwhile, analyst Egrag Crypto points to a bullish symmetrical triangle pattern, with Fibonacci extensions pointing to targets between $8 and $27. Even conservative measures from the bull pennant structure project a breakout target of $14—a 564% upside from current levels. But there's a catch: XRP must first break cleanly above $2.65, which has capped every rally since March. If that level falls, we're likely in for an aggressive move toward $3 and beyond. It's evident that Ripple is expanding aggressively, institutional money is flowing in through CME futures, and bullish technicals are all aligning, XRP may be approaching its breakout moment. The question isn't if XRP will break out of its consolidation range, but how far it will run once it does. XRP is sitting at $2.0852.
Business Insider
7 hours ago
- Business Insider
OpenAI starts renting Google AI chips to power ChatGPT, Information reportst
Microsoft-backed (MSFT) OpenAI, one of the globe's largest customers of Nvidia (NVDA) AI chips, has recently started renting Google's (GOOGL) AI chips to power ChatGPT and other products, The Information's Anissa Gardizy and Qianer Liu report, citing a person who is involved in the arrangement. The move marks the first time OpenAI has used non-Nvidia semis in a meaningful way, the authors note. Confident Investing Starts Here:
Forbes
13 hours ago
- Forbes
The Eight Virtues Of Great Leaders
A torn piece of paper with the word "Leadership" printed on it leans against a compass which is out ... More of focus in the background. I write on leadership (and a few other topics) because I'm supposed to be an 'expert.' Well, let me set the record straight. That word – expert – makes me nervous. At best, I'm a know-it-all, and so you know the difference, an expert knows it all; a know-it-all thinks he's an expert. But I've learned along the way since my career began 57 years ago, and leadership is one area in which I can share some value, as I've filled numerous leadership positions and consulted to many others across 25 industries. 'Leadership cannot be taught. It can only be learned.' So declared Harold Geneen, CEO of ITT when it was the world's largest conglomerate. That aphorism of his is so solid, so unassailable, and so universal, that all leadership theory and practice springs forth from it. Or at least, it should. Furthermore, it should support the axiom that it is not skills alone that will determine leadership in the 21st century and beyond. It's the humanity of the leader that will do it every time. Case in point, two prominent American CEOs of the 1980s and 1990s: Jack Welch of GE and Dennis Kozlowski of Tyco. There's not enough room here for the story, but you should look it up. It's a good one. Although they were both hard-charging, blazingly smart, and brutally (uncomfortably) honest, Welch was virtuous and Kozlowski was a convicted criminal. Welch spent his retirement in glory; Kozlowski spent six years in jail. So, as I rest my case about leadership virtues being the differentiators, here's what I've learned along the way: The Eight Virtues of Great Leaders. Vision Great leaders know that the future did not just happen. It was created. They see it before the rest of us do, have unusual clarity in articulating it, and are unwaveringly committed to it. Forthrightness Great leaders are honest (to a fault), just, fair, unbiased, ethical, and moral. They say what they mean and mean what they say. They are consistent. Strong sense of self Great leaders are self-reliant, selfless, have a realistic view of the present and a comfortable relationship with it. They are strong but not at the expense of others. Just the opposite: in support of others. They are empathetic, and they use their strong self in service of, not in command of, others. Sphere of Awareness The world is growing every day and the provincial attitude that minding your own store is all you need to do – is failure waiting to happen. Great leaders are constantly enlarging their sphere of awareness – and yours along with it. Energy Great leaders exude strength and stamina. They have been generators with high output who now are ready to become fusion reactors that produce more energy than they consume. No, that's not impossible; it's been achieved in a laboratory setting in Livermore, California, and is the new model for energy. Great leaders don't suck up energy; they proliferate it. Creativity Creativity is the only sustainable asset that any person, organization, or nation will ever again have. Great leaders believe that you can steal their current assets but as long a they can continue to generate new ideas, they will win. They're right. Originality and adaptability are hallmarks here. Trust Thomas Edison was asked why he had 300 assistants, 'Because I can't do all this by myself,' said he. That, from the greatest idea creation genius in history. Aside from reading, the thing that has moved humanity forward more than anything else is humor. It is uniquely human, and as long as it is nonhostile, it is a key leadership virtue. My Observation From the first leader I ever coached to the last, not to mention my own leadership development, leadership virtues outplayed leadership skills every single time.
