ITT Corp. Q2 Profit Tops Estimates; Lowers Full-year Adj. EPS Guidance

(RTTNews) - ITT Corp. (ITT) reported second-quarter income from continuing operations to company of $140.6 million compared to $41.2 million, a year ago. EPS from continuing operations increased to $1.56, from $0.44, primarily due to the recognition of a $101 million pre-tax benefit, or $0.70 per share, associated with implementing a new single-firm asbestos defense strategy. Adjusted earnings from continuing operations was $62.2 million or $0.69 per share, for the quarter.

On average, 13 analysts polled by Thomson Reuters expected the company to report profit per share of $0.59 for the quarter. Analysts' estimates typically exclude special items.

Revenue was $628 million reflecting a 5 percent decline, primarily due to unfavorable foreign exchange. Analysts expected revenue of $612.84 million for the quarter. On an adjusted basis, organic revenue increased 1 percent.

On a GAAP basis, the company lowered its previously announced 2015 GAAP revenue guidance and increased full-year EPS guidance. GAAP revenue is expected to be down 9 to 7 percent. GAAP EPS is now expected to be in the range of $2.32 to $2.50.

On an adjusted basis, the company lowered its full-year EPS guidance by $0.05 at the mid-point. Adjusted EPS is now expected to be in the range of $2.45 to $2.55. Organic revenue is now expected to range from down 3 percent to down 1 percent. Analysts expect the company to report earnings per share of $2.55.