Shares of technology solutions provider Fortive (NYSE:FTV) are tanking today after its third-quarter revenue of $1.49 billion missed expectations by $30 million. Nevertheless, its EPS of $0.85 landed in line with estimates.
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During the quarter, Fortive’s software businesses remained resilient with an annual recurring revenue growth of 9%. Additionally, its operating margin expanded by 220 basis points to 20%. Sales in the company’s Intelligent Operating Solutions segment rose from $613.7 million to $644.3 million. In addition, the Precision Technologies segment grew from $523.7 million to $530.6 million.
In the current business environment, Fortive is focusing on establishing a leadership position in connected workflows on the back of positive trends in energy transition, productivity, and automation & digitization.
Looking ahead to Fiscal Year 2023, the company expects revenue to hover in the range of $6 billion to $6.1 billion with EPS anticipated to fall between $3.37 and $3.40. For the upcoming quarter, Fortive expects EPS to land between $0.92 and $0.95 on revenue of $1.6 billion.
What Is the Target Price for Fortive?
Overall, the Street has a Moderate Buy consensus rating on Fortive. The average FTV price target of $82.69 implies a 17.7% potential upside. That’s on top of a nearly 12% rise in Fortive shares over the past year.
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