Fortive Corp. Q3 FY2023 results: revenue $1.5 billion, up 2.6% on the year

Fortive Corp. (FTV) reported revenue of $1.5 billion for Q3 FY2023, the quarter ended 29 September 2023, up 2.6% on the same quarter a year earlier. Net income was $218 million, up 14.8% on the year, and diluted earnings per share $0.61. The figures are the company's own, from the 10-Q it filed with the SEC on 25 October 2023.

Revenue$1.5 billionup 2.6%

Net income$218 millionup 14.8%

Diluted EPS$0.61

QuarterQ3 FY2023ended 29 September 2023

The quarter, against the one before and a year earlier

Line	Q3 FY2023	Q2 FY2023	A year earlier	Change on the year
Revenue	1,494	1,526	n/a	n/a
Cost of revenue	602	621	n/a	n/a
Gross profit	893	905	n/a	n/a
Gross margin	59.8%	59.3%	n/a
Research and development	98.4	100	n/a	n/a
Selling, general and administrative	504	514	n/a	n/a
Operating income	291	291	n/a	n/a
Operating margin	19.5%	19.1%	n/a
Interest expense	29.8	33.1	n/a	n/a
Pre-tax income	257	250	n/a	n/a
Income tax	39.1	41.4	n/a	n/a
Effective tax rate	15.2%	16.5%	n/a
Net income	218	209	n/a	n/a
Net margin	14.6%	13.7%	n/a
Diluted EPS	$0.61	$0.59	n/a	n/a

$ million except per share. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q3 FY2023	Q2 FY2023	A year earlier	Change on the year
Operating cash flow	411	321	n/a	n/a
Capital expenditure	27.9	21.0	n/a	n/a
Free cash flow	384	300	n/a	n/a
Free cash flow margin	25.7%	19.7%	n/a
Share-based compensation	29.5	29.0	n/a	n/a
Buybacks	78.8	129	n/a	n/a
Dividends paid	24.6	24.6	n/a	n/a
Dividend per share	$0.07	$0.07	n/a	n/a
Diluted shares, weighted	356m	356m	n/a	n/a
Shares outstanding at period end	351m	352m	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q3 FY2023	Q2 FY2023	A year earlier	Change on the year
Total assets	15,664	15,731	n/a	n/a
Cash and equivalents	714	713	n/a	n/a
Receivables	925	935	n/a	n/a
Inventory	552	561	n/a	n/a
Goodwill	9,059	9,052	n/a	n/a
Long-term debt	2,732	2,978	n/a	n/a
Borrowings, as the company tags them	2,738	2,985	n/a	n/a
Shareholders' equity	10,078	9,966	n/a	n/a

Quarterly results, the last 12 quarters

	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025	Q1 FY2026
Revenue	1,526	1,494	1,584	1,524	1,552	1,535	1,073	1,474	1,519	1,027	1,122	1,069
Cost of revenue	621	602	636	620	624	613	643	593	623	378	n/a	394
Gross profit	905	893	948	904	928	921	696	881	896	649	709	676
Gross margin	59%	60%	60%	59%	60%	60%	65%	60%	59%	63%	63%	63%
R&D	100	98.4	99.2	104	101	102	107	105	109	62.0	n/a	66.5
SG&A	514	504	537	561	525	524	563	542	564	428	n/a	417
Operating income	291	291	311	302	302	296	212	234	222	160	226	192
Operating margin	19%	19%	20%	20%	19%	19%	20%	16%	15%	16%	20%	18%
Interest expense	33.1	29.8	28.5	44.0	-38.7	-37.1	-121	-32.0	-32.1	-25.4	-31.0	-31.6
Pre-tax income	250	257	278	234	229	232	275	201	192	135	n/a	164
Tax rate	17%	15%	4%	11%	15%	5%	24%	15%	13%	13%	n/a	17%
Net income	209	218	265	207	195	222	209	172	167	55.0	186	136
Net margin	14%	15%	17%	14%	13%	14%	19%	12%	11%	5%	17%	13%
Diluted EPS	$0.59	$0.61	$0.74	$0.58	$0.55	$0.63	$0.60	$0.50	$0.49	$0.16	$0.58	$0.44
Operating cash flow	321	411	447	257	309	459	502	242	311	164	366	235
Capital expenditure	21.0	27.9	34.1	26.4	29.2	21.6	37.0	26.7	36.7	28.6	n/a	26.6
Free cash flow	300	384	413	230	280	437	465	215	274	136	n/a	208
Buybacks	129	78.8	65.0	0.0	153	270	467	203	142	1,001	265	500
Dividends paid	24.6	24.6	28.1	28.1	28.0	27.8	27.3	27.2	27.0	19.2	18.8	18.4
Shares outstanding	352m	351m	351m	352m	350m	347m	341m	340m	338m	318m	313m	306m
Filing	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 29 September 2023, filed 25 October 2023, accession 0001659166-23-000232: the filing on EDGAR. All of Fortive Corp.'s filings: EDGAR company page.

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