Analyst Note| Joshua Aguilar |
Nothing in narrow-moat-rated ITT’s first-quarter results materially alters our long-term point of view. Management raised the lower end of its adjusted EPS range by a dime, setting the new range between $4.65 and $4.95. We model above the midpoint of the guide with adjusted EPS of $4.87, meaning we moved up our prior projection by a quarter. We mostly pulled forward our estimates, and model at the top end of the organic revenue guide, but around the midpoint of the adjusted segment operating margin guide. We now value ITT at 21 times adjusted EPS, relatively in line with the rest of the U.S. multi-industry category.