ITT Inc. (ITT) Post Earning Analysis
ITT Inc., founded in 1920 and headquartered in Stamford, CT, is a leading manufacturer of engineered components and technology solutions. The company operates in three primary segments: Motion Technologies (MT), Industrial Process (IP), and Connect and Control Technologies (CCT), serving the transportation, industrial, and energy markets. ITT’s portfolio includes well-known brands like Goulds Pumps, KONI, and Cannon, among others.
Recent news surrounding ITT Inc. (ITT) has been positively highlighting the company’s stock performance and future prospects. As of October 2025, ITT has been featured in several reports emphasizing its potential as both a momentum and growth stock. Zacks Investment Research published articles on October 6 and 7, describing ITT as an “Incredible Growth Stock” and a “Great Momentum Stock,” respectively. These reports suggest that ITT is well-positioned for future growth, citing three main reasons that make it an attractive investment opportunity.
Additionally, ITT has announced that it will release its third-quarter results for 2025 on October 29. This upcoming earnings report, as detailed by Business Wire, is anticipated by investors who are keen to see if the company’s performance aligns with the positive growth and momentum outlooks presented by analysts.
These developments could potentially impact ITT’s stock positively, as current and prospective investors might be influenced by the optimistic analysis and the forthcoming financial results. This anticipation of strong quarterly performance could drive increased investor interest and potentially boost stock prices in the short term.
The current price of the asset is $178.20, reflecting a 1.63% decline today. Despite this drop, the price remains robust compared to historical data. It is positioned close to the upper end of both its 52-week and year-to-date ranges, with the high at $185.57 and the low at $105.18, indicating a significant appreciation from the lowest point this year.
The asset’s price is slightly below the 20-day moving average (MA20) by 0.45%, suggesting a minor short-term negative trend. However, it remains well above the 50-day and 200-day moving averages by 3.43% and 18.02%, respectively, highlighting a strong medium to long-term bullish trend.
The Relative Strength Index (RSI) at 53.67 suggests the asset is neither overbought nor oversold, supporting a stable market condition. The Moving Average Convergence Divergence (MACD) of 2.23 further indicates a positive momentum in the longer term, despite recent pullbacks.
Overall, the asset shows a robust performance with potential for continued strength, albeit with some short-term volatility as indicated by the recent price drop and proximity to the week’s low of $177.52.
Price Chart
ITT Inc. reported robust financial results for Q2 2025, demonstrating significant growth across various metrics. The company achieved a 7% increase in revenue, totaling $972 million, compared to $905.9 million in Q2 2024, with organic revenue growth at 4%. This improvement was driven by strong demand in pump projects, aerospace, and industrial connectors, alongside market share gains in automotive and rail sectors. Operating income rose by 10% year-over-year to $175 million, with the operating margin expanding by 40 basis points to 18.0%.
Earnings per share (EPS) also saw healthy growth; reported EPS was $1.52, up 4.8% from the previous year, while adjusted EPS increased by 10% to $1.64, primarily due to productivity improvements and pricing actions. Despite a slight decrease of 2.5% in net cash provided by operating activities, which stood at $154 million, free cash flow experienced a modest increase of 2.1% to $137 million.
Additionally, ITT announced a quarterly dividend of $0.351 per share, payable at the end of September 2025. Looking ahead, the company has raised its full-year revenue growth guidance to 5% to 7% and EPS guidance to $5.95 to $6.15, indicating anticipated growth of 8% to 11% for the full year. This optimistic outlook reflects ITT’s strong performance and strategic positioning in its market segments.
Earnings Trend Table
| Date | Estimate EPS | Reported EPS | Surprise % | |
|---|---|---|---|---|
| 0 | 2025-07-31 | 1.62 | 1.64 | 1.23 |
| 1 | 2025-05-01 | 1.44 | 1.45 | 0.90 |
| 2 | 2025-02-06 | 1.47 | 1.50 | 1.81 |
| 3 | 2024-10-29 | 1.44 | 1.46 | 1.70 |
| 4 | 2024-08-01 | 1.46 | 1.49 | 2.27 |
| 5 | 2024-05-02 | 1.36 | 1.42 | 4.69 |
| 6 | 2024-02-08 | 1.34 | 1.34 | 0.24 |
| 7 | 2023-11-02 | 1.27 | 1.37 | 7.51 |
Over the past eight quarters, the company has consistently reported earnings per share (EPS) that exceeded analyst estimates, indicating a robust performance trend. The data reveals a progressive increase in both estimated and reported EPS, reflecting a positive trajectory in the company’s profitability.
Starting from November 2023, the reported EPS of 1.37 significantly outperformed the estimate of 1.27, with a surprise percentage of 7.51%, the highest in the observed period. This set a strong foundation for subsequent quarters. Notably, the smallest surprise came in February 2024, where the reported EPS matched the estimate at 1.34, suggesting a precise alignment with market expectations.
Subsequent quarters saw a gradual increase in both estimated and reported EPS, with the surprise percentage generally maintaining a modest but positive figure. The trend indicates effective management forecasting and possibly conservative guidance, as the company consistently meets or exceeds expectations.
By July 2025, the EPS estimate was 1.62, with the actual reported EPS slightly higher at 1.64, maintaining a stable surprise percentage of 1.23%. This consistent outperformance, albeit with diminishing surprise percentages over time, suggests that while the company continues to exceed expectations, the margin by which it does so is narrowing, possibly as estimates become more aligned with operational realities.
Overall, the company has demonstrated financial growth and reliability in surpassing analyst expectations, which could be viewed favorably by investors seeking consistent performance.
Dividend Payments Table
| Date | Dividend |
|---|---|
| 2025-09-02 | 0.351 |
| 2025-06-02 | 0.351 |
| 2025-03-06 | 0.351 |
| 2024-11-29 | 0.319 |
| 2024-09-03 | 0.319 |
| 2024-06-03 | 0.319 |
| 2024-03-07 | 0.319 |
| 2023-11-30 | 0.29 |
The dividend data spanning from November 2023 to September 2025 indicates a clear trend of incremental increases. Initially, dividends were set at $0.29 in November 2023. This figure remained constant for four consecutive quarters, with dividends paid at $0.319 from March 2024 through November 2024. A notable increase occurred after this period, with dividends rising to $0.351, starting from March 2025 and maintained at this level through to September 2025.
This pattern suggests a strategic approach to dividend increments, potentially reflecting the company’s improving financial health or a policy aimed at gradually rewarding investors while maintaining financial stability. The consistency in payment increments over successive quarters also indicates reliability and predictability in the company’s dividend policy, factors which are often positively regarded by investors seeking stable returns on their investments. This trend could be indicative of a cautious yet optimistic outlook by the company’s management regarding future earnings and cash flow capabilities.
The most recent rating changes for Outer by various financial firms show a mixed sentiment with both upgrades and downgrades, alongside a new initiation:
- Wolfe Research – Initiation on December 11, 2024: Wolfe Research initiated coverage on Outer with a “Peer Perform” rating. No specific target price was provided. This neutral stance suggests that Wolfe Research views Outer’s performance as in line with the average of its sector peers, indicating neither a particularly bullish nor bearish outlook.
- BofA Securities – Upgrade on November 16, 2023: BofA Securities upgraded Outer from “Neutral” to “Buy,” adjusting the target price from $105 to $125. This represents a significant positive revision, suggesting increased confidence in Outer’s growth prospects or operational improvements that could drive the stock’s performance above the broader market expectations.
- BofA Securities – Downgrade on July 11, 2022: Earlier, BofA Securities downgraded Outer from “Buy” to “Neutral,” with a substantial decrease in the target price from $113 to $74. This downgrade reflects concerns or disappointing performance indicators that may have led analysts to revise their expectations about the company’s future earnings potential and stock valuation downward.
- UBS – Upgrade on April 8, 2022: UBS upgraded Outer from “Neutral” to “Buy,” albeit with a lower target price adjustment from $107 to $95. This upgrade, despite the lower price target, suggests a positive reassessment of the company’s long-term value or potential recovery from previous challenges, although tempered by certain ongoing uncertainties or market conditions.
These rating changes reflect a dynamic view on Outer’s financial health and market position, influenced by evolving business performance, market trends, and possibly macroeconomic factors.
The current price of the stock stands at $178.20, which notably surpasses the average target prices provided by various analysts over recent times. For instance, the most recent upgrade by BofA Securities on November 16, 2023, increased their target from $105 to $125, yet this is still substantially below the current market price. Similarly, earlier ratings also set targets well under the current price, such as UBS’s upgrade on April 8, 2022, which set the target at $95.
This pattern suggests a strong performance by the stock, outperforming the expectations of market analysts consistently. The upgrades and downgrades in the ratings reflect shifts in market perception over time, yet none have approached the current high price level, indicating potential market dynamics or company performance that analysts did not fully anticipate.
Disclaimer: The information provided here is for educational and informational purposes only and should not be interpreted as financial advice, investment recommendations, or trading guidance. Markets involve risk, and past performance is not indicative of future results. You should always conduct your own research and consult with a qualified financial advisor before making any investment decisions. By acting, you accept full responsibility for your choices.
