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Fortive's (FTV) Q3 Earnings to Gain from Portfolio Strength

Fortive Corporation FTV is set to report third-quarter fiscal 2017 results on Oct 26.

Notably, the company has beaten the Zacks Consensus Estimates for earnings in all of the trailing four quarters, with an average surprise of 5.80%. Last quarter, the company delivered a positive earnings surprise of 2.90%.

Let’s find out what Fortive has to offer investors in this quarter.

Portfolio Strength, Acquisitions: Key Catalyst

Fortive’s diverse product portfolio and expansion into the Cloud computing segment is quite encouraging. The acquisitions of eMaint Enterprises by Fortive’s subsidiary, Fluke, and the buyout of Global Traffic Technologies have allowed the company to enter into the rapidly-growing cloud computing market.
 

Fortive Corporation Price and EPS Surprise

 

Fortive Corporation Price and EPS Surprise | Fortive Corporation Quote

We expect strong demand for company’s products — Tektronix, Qualitrol, Thompson and Kollmorgen — to continue to drive growth in China. The company is likely to benefit from project wins by Gilbarco Veeder-Root, Qualitrol, and Morgan in the Western Europe.

Further, the Tektronix 5 Series mixed-signal oscilloscope has gained significant traction since its release in June.

Moreover, Fortive’s restructuring actions have been aiding the company to lower cost structure. The company has also been focusing on products which generally carry higher margins. These actions are expected to generate higher gross and operating margins for the company in the to-be reported quarter.

Why a Likely Positive Surprise?

Moreover, our proven model shows that Fortive is likely to beat earnings due to the favorable combination of Zacks Rank #2 (Buy) and +0.69% Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Note that stocks with a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) have a significantly higher chance of beating earnings estimates. You can see the complete list of today’s Zacks #1 Rank stocks here.

Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.

Stocks to Consider

Here are a few stocks which you may also consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter.

Applied Materials Inc AMAT has an Earnings ESP of +0.37% and sports a Zacks Rank #1.

NVIDIA Corporation NVDA has an Earnings ESP of +1.06% and carries a Zacks Rank #1.

Kemet Corporation KEM has an Earnings ESP of +7.46% and sports a Zacks Rank #1.

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Kemet Corporation (KEM): Free Stock Analysis Report
 
NVIDIA Corporation (NVDA): Free Stock Analysis Report
 
Applied Materials, Inc. (AMAT): Free Stock Analysis Report
 
Fortive Corporation (FTV): Free Stock Analysis Report
 
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