Fortive Corp (NYSE: FTV) stock fell 1.43% after the company posted mixed results for the first quarter of FY 19. Adjusted net earnings were $245.6 million, up 6.7% over the prior year. The company had reported the adjusted revenue growth of 6.7 percent to $1.59 billion in the first quarter of FY 19, missing the analysts’ estimates for revenue of $1.62 billion. Acquisitions, including Gordian and Accruent, contributed 580 basis points of top-line growth, while unfavorable foreign exchange rates reduced growth by 280 basis points. Developed markets’ core revenue grew low single-single-digits, reflecting continued strength in North America and strong performance in Japan. Western Europe was relatively flat as strong growth at GVR and Qualitrol was offset by slower growth at Fluke and weakness at Tektronix.
On April 1st, FTV had closed the acquisition of the Advanced Sterilization Products business from Johnson & Johnson. The $2.7 billion transaction represents our largest acquisition to-date and provides Fortive with a strong position in the attractive $4 billion mid-single-digit growth medical sterilization and disinfection market.
FTV in the first quarter of FY 19 has reported the adjusted earnings per share of 69 cents.
This reflects core revenue increase of 3.7%. Core revenue growth was highlighted by the strong performance of GVR as well as Industrial Scientific and EMC. Geographically, high-growth markets’ core revenue grew mid-single-digits led my Asia and the Middle East. China posted another strong quarter with high single-digit growth, led by GVR, Fluke and Tektronix. Core revenue growth in North America was mid-single-digits, led by GVR, Tektronix, EMC and Industrial Scientific. Moreover, Professional Instrumentation posted sales growth of 8.7%, including core revenue growth of 1.8%. Advanced Instrumentation and Solutions core revenue increased low single-digits as strong performance in Industrial Scientific and EMC was offset by lower growth for Fluke and Tektronix during the quarter. Field Solutions core revenue grew low single-digits with low single-digit growth in developed markets paced by continued strong performance of ISC. Fluke generated low single-digit core growth, led by double-digit growth at Fluke Calibration.
For the second quarter of 2019, Fortive anticipates adjusted diluted net earnings per share from continuing operations to be in the range of $0.86 to $0.90. For FY19, Fortive expects adjusted diluted net earnings per share from continuing operations to be in the range of $3.55 to $3.65, which includes $0.20 from the Advanced Sterilization Products business.