Fortive Corporation (FTV) Q3 2022 Earnings Call Transcript

Fortive Corporation (NYSE:FTV) Q3 2022 Results Conference Call October 26, 2022 12:00 PM ET

Company Participants

Elena Rosman - Vice President of Investor Relations

Jim Lico - President and Chief Executive Officer

Chuck McLaughlin - Senior Vice President and Chief Financial Officer

Conference Call Participants

Deane Dray - RBC Capital Markets

Josh Pokrzywinski - Morgan Stanley

Steve Tusa - JPMorgan

Julian Mitchell - Barclays

Scott Davis - Melius Research

Jeff Sprague - Vertical Research Partners

Andrew Obin - Bank of America

Nigel Coe - Wolfe Research

Andy Kaplowitz - Citigroup

Joe Giordano - Cowen

Operator

Good day. My name is Dennis, and I will be your conference facilitator today. At this time, I'd like to welcome everyone to the Fortive Corporation's Third Quarter 2022 Earnings Results Conference Call [Operator Instructions].

I would now like to turn the call over to Ms. Elena Rosman, Vice President of Investor Relations. Ms. Rosman, you may begin your conference.

Elena Rosman

Thank you, Dennis. And thank you, everyone, for joining us on today's call. With us today are Jim Lico, our President and Chief Executive Officer; and Chuck McLaughlin, our Senior Vice President and Chief Financial Officer. We present certain non-GAAP financial measures on today's call. Information required by Regulation G is available on the Investors section of our Web site at www.fortive.com. Our statements on period-to-period increases or decreases refer to year-over-year comparisons on a continuing operations basis. During the call, we will make forward-looking statements, including statements regarding events or developments that we expect or anticipate will or may occur in the future. These forward-looking statements are subject to a number of risks, and actual results might differ materially from any forward-looking statements that we make today. Information regarding these risk factors is available in our SEC filings, including our annual report on Form 10-K for the year ended December 31, 2021. These forward-looking statements speak only as of the date that they are made and we do not assume any obligation to update any forward-looking statements.

With that, I'd like to turn the call over to Jim Lico.

Jim Lico

Thanks, Elena. I'll begin on Slide 3. We had another quarter of outperformance with 12% core revenue growth; 80 and 160 basis points adjusted gross and operating margin expansion, respectively; 20% adjusted earnings per share growth and 22% free cash flow growth, all above the guidance we set coming into the quarter. Our ability to outperform reflects the quality of our portfolio, our team's rigorous execution and the power of the Fortive business system, delivering higher and more profitable growth and free cash flow generation. Third quarter also demonstrated continued success launching a number of new products and solutions that solve our customers' toughest safety, quality and productivity challenges. We have strong conviction in the secular drivers favoring enduring growth in these markets. As a result, we are confident the work we do to create long term sustainable competitive advantages for our operating companies and strategic segments will yield best-in-class returns for Fortive for a long time to come.