Latest news with #Lico
Yahoo
26-06-2025
- Business
- Yahoo
5 Insightful Analyst Questions From Fortive's Q1 Earnings Call
Fortive's first quarter results were met with a negative market reaction, as the company missed Wall Street's revenue expectations and faced a year-on-year sales decline. Management attributed the softness primarily to delayed customer investments in its Precision Technologies segment, citing increased political and macroeconomic uncertainty. CEO Jim Lico highlighted, "We saw customers in Precision Technologies delay investments in light of increased political and macroeconomic uncertainty, putting a halt to the momentum we had seen in the second half of 2024." Meanwhile, Intelligent Operating Solutions and Advanced Healthcare Solutions segments showed relative stability, supported by recurring revenue streams and product innovation. Is now the time to buy FTV? Find out in our full research report (it's free). Revenue: $1.47 billion vs analyst estimates of $1.5 billion (3.3% year-on-year decline, 1.4% miss) Adjusted EPS: $0.85 vs analyst estimates of $0.85 (in line) Adjusted EBITDA: $396 million vs analyst estimates of $398.1 million (26.9% margin, 0.5% miss) Management lowered its full-year Adjusted EPS guidance to $3.90 at the midpoint, a 3.9% decrease Operating Margin: 15.8%, down from 19.8% in the same quarter last year Organic Revenue rose 2.2% year on year, in line with the same quarter last year Market Capitalization: $23.82 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) pressed CEO Jim Lico on the company's approach to localizing production in response to tariffs; Lico explained that efforts involve accelerating existing contract manufacturing and shifting capacity, rather than major new investments. Steve Tusa (JPMorgan) questioned the volatility in Test and Measurement demand versus the broader economy; Lico attributed this to delayed R&D investments among semiconductor and electronics customers, who are reassessing buying cycles amid tariff uncertainty. Julian Mitchell (Barclays) asked about margin trends in Advanced Healthcare Solutions, especially the first-quarter decline; Vice President Elena Rosman clarified that margins typically ramp throughout the year and were temporarily affected by FX and fewer business days. Joe Giordano (TD Cowen) inquired about competitive dynamics and tariff-related pricing in Precision Technologies, focusing on Tektronix; Lico noted the company's global manufacturing flexibility and ability to shift production to protect intellectual property and mitigate tariff impacts. Chris Snyder (Morgan Stanley) asked how much of the tariff mitigation would be driven by price increases versus other actions; Lico estimated that about two-thirds would be from price, with the remainder from surcharges and operational adjustments. In the coming quarters, our analysts will closely monitor (1) the effectiveness and speed of Fortive's tariff mitigation measures, (2) stabilization or potential recovery in the Precision Technologies segment, and (3) the execution of the Ralliant spin-off and any resulting changes in capital allocation or operational priorities. Progress in recurring revenue expansion and supply chain localization will also be important indicators of resilience. Fortive currently trades at $70.08, in line with $69.61 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out 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.
Business Wire
27-05-2025
- Business
- Business Wire
Fortive Announces Share Repurchase Authorizations
EVERETT, Wash.--(BUSINESS WIRE)--Fortive Corporation ('Fortive') (NYSE: FTV) announced today that its Board of Directors has approved an increase in the number of shares of Fortive's common stock authorized under its general share repurchase program by approximately 15.63 million additional shares (the 'General Share Repurchase Program'). Following such increase, the total number of shares remaining available for repurchase under the General Share Repurchase Program will be 20 million shares, including approximately 4.37 million shares available under the prior authorizations by the Board of Directors. The General Share Repurchase Program has no expiration date. In addition and in connection with the pending separation of Ralliant Corporation, Fortive's precision technologies segment (the 'Separation'), Fortive announced that its Board of Directors concurrently adopted a separate special purpose share repurchase program (the 'Special Purpose Share Repurchase Program') under which Fortive may purchase up to $550 million in Fortive's common stock exclusively from the proceeds of the approximately $1.15 billion pre-Separation cash dividend from Ralliant to Fortive, together with any other cash received by Fortive from Ralliant in connection with the Separation (collectively, the 'Ralliant Cash Proceeds'). Repurchases of shares of Fortive common stock using the Ralliant Cash Proceeds will only be made through the Special Purpose Share Repurchase Program. James Lico, President and Chief Executive Officer, stated, 'I am excited for the opportunities ahead for Fortive and Ralliant as two focused, independent public companies with distinct and compelling investment profiles, and we look forward to bringing our Fortive and Ralliant leadership teams together for the upcoming investor day conferences to share our respective vision for the future. The board's approval of this special purpose share repurchase program reflects our confidence in Fortive's future and its unwavering focus on creating sustained value for shareholders.' Mr. Lico continued, 'Since we announced the separation of the Precision Technologies segment last year, we have deployed approximately 75 percent of our free cash flow to share repurchases. We are pleased to replenish our repurchase authorization, demonstrating a commitment to disciplined, balanced and value-enhancing capital deployment following the spin-off of Ralliant on June 28, 2025.' Under the shares repurchase programs, Fortive may purchase its common stock on a discretionary basis from time to time on the open market or otherwise, including through the use of trading plans that satisfy the conditions of Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, in accordance with the requirements of the U.S. Securities and Exchange Commission. The timing and amount of common stock repurchases made under the share repurchase programs will be determined by Fortive's management based on its evaluation of market conditions and other factors. The repurchase programs do not obligate Fortive to acquire any particular amount of shares, and may be suspended or discontinued at any time. UPCOMING EVENTS Ralliant will host an investor day conference and innovation showcase at 10 a.m. ET on Tuesday, June 10, 2025 at NYSE. In addition, Fortive will host an investor day conference and innovation showcase on Tuesday, June 10, 2025 at NYSE, following the Ralliant investor day conference. A real-time webcast of the presentations will be accessible at and at where related materials will be posted prior to the presentations. ABOUT FORTIVE Fortive is a provider of essential technologies for connected workflow solutions across a range of attractive end-markets. Fortive's strategic segments - Intelligent Operating Solutions, Advanced Healthcare Solutions, and Precision Technologies - include well-known brands with leading positions in their markets. The company's businesses design, develop, service, manufacture, and market professional and engineered products, software, and services, building upon leading brand names, innovative technologies, and significant market positions. Fortive is headquartered in Everett, Washington and employs a team of more than 18,000 research and development, manufacturing, sales, distribution, service and administrative employees in more than 50 countries around the world. With a culture rooted in continuous improvement, the core of our company's operating model is the Fortive Business System. For more information please visit: FORWARD-LOOKING STATEMENTS Statements in this release that are not strictly historical, including statements regarding Fortive's plans with respect to share repurchases, ability to deliver shareholder value or return, future financial performance, Fortive's anticipated spin-off of the outstanding shares of common stock of Ralliant, including the timing thereof or the tax-efficient nature thereof, the anticipated cash distribution from Ralliant to Fortive, and any other statements regarding events or developments that we believe or anticipate will or may occur in the future are 'forward-looking' statements within the meaning of the federal securities laws. Factors that could cause actual results to differ materially from those in the forward-looking statements include, among other things: the ability to satisfy the conditions to, and complete, the transaction on a timely basis or at all, including the ability to obtain regulatory approvals, the ability of Fortive or Ralliant to realize the benefits of the transaction, Fortive's and Ralliant's performance and maintenance of important business relationships pending closing of the transaction, the possibility that the share repurchase programs may be suspended or discontinued, deterioration of or instability in the economy, the markets we serve, international trade policies and deteriorating trade relations with other countries, including imposition of tariffs and retaliatory tariffs between United States and China and other countries, responsive economic nationalism, trade restrictions, and enhanced regulation, the financial markets, geopolitical conditions and conflicts, security breaches or other disruptions of our information technology systems, supply chain constraints, our ability to adjust purchases and manufacturing capacity to reflect market conditions, reliance on sole sources of supply, contractions or lower growth rates and cyclicality of markets we serve, competition, changes in industry standards and governmental regulations, our ability to recruit and retain key employees, our ability to successfully identify, consummate, integrate and realize the anticipated value of appropriate acquisitions and successfully complete divestitures and other dispositions, our ability to develop and successfully market new products, software, and services and expand into new markets, the potential for improper conduct by our employees, agents or business partners, contingent liabilities relating to acquisitions and divestitures, impact of changes to tax laws, our compliance with applicable laws and regulations and changes in applicable laws and regulations, risks relating to international economic, geopolitical, including war and sanctions, legal, compliance and business factors, risks relating to potential impairment of goodwill and other intangible assets, currency exchange rates, tax audits and changes in our tax rate and income tax liabilities, the impact of our debt obligations on our operations, litigation and other contingent liabilities including intellectual property and environmental, health and safety matters, our ability to adequately protect our intellectual property rights, risks relating to product, service or software defects, product liability and recalls, risks relating to product manufacturing, our relationships with and the performance of our channel partners, commodity costs and surcharges, adverse effects of restructuring activities, our plans to separate into two independent, publicly-traded companies, risk related to tax treatment of our prior or pending separation, impact of our indemnification obligation to Vontier, impact of changes to U.S. GAAP, labor matters, and disruptions relating to man-made and natural disasters and climate change. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings, including our Annual Report on Form 10-K for the year ended December 31, 2024 and Quarterly Report on Form 10-Q for the quarter ended March 28, 2025. These forward-looking statements speak only as of the date of this presentation, and Fortive does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise.
New York Times
02-04-2025
- Business
- New York Times
Tariffs Are Likely to Hit U.S. Renewable Energy
President Trump's tariffs are likely to raise the costs of building renewable energy projects in the United States, analysts say, adding to the challenges of an already struggling industry. Generating equipment, like wind turbines, is often made with parts from many suppliers around the globe, and assembled in the United States. Tariffs are likely to increase the cost of each imported part. 'A turbine consists of thousands of subcomponents,' said Endri Lico, an analyst at Wood Mackenzie, a consulting firm. Mr. Lico estimated that in 2023, the United States imported about $1.7 billion of wind-related components, mainly from Europe, Mexico, Vietnam and India. While the details of Mr. Trump's tariffs remain to be seen, Mr. Lico estimated a 25 percent tariff on imported goods could drive up the cost of land-based wind turbines by 10 percent and increase the cost of building renewable energy facilities by 7 percent increase. That in turn could lead to higher prices for the electricity that they produce. Higher costs could discourage development of new power sources at a time when demand for electricity is expected to rise to feed data centers and power electric vehicles. Even before the prospect of tariffs, analysts had dialed back their expectations of renewable energy growth because of the Trump administration's skepticism. States on the East Coast were counting on offshore wind to achieve clean energy goals in the coming years. But analysts now say that only a handful of these multibillion-dollar projects are likely to be built in the coming years. The share prices of Vestas Wind Systems, the Denmark-based turbine maker, and Orsted, the Danish offshore wind developer, which both have offshore wind projects in the United States, have fallen sharply over the last year, although both companies' shares rose on Wednesday. Mr. Lico said that turbine makers like Vestas and GE Vernova, its main rival in the United States, have factories in different locations and may be able to shift their sourcing of components to mitigate the affects of any tariffs. Imports of land-based wind equipment have fallen sharply in recent years as manufacturing in the United States picked up steam, stimulated by the Biden administration's Inflation Reduction Act.
