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ITT Corp Q3 Profit Tumbles on Charges; Outlook Raised (ITT)

By Dividend.com Staff
October 30th, 2009

itt-corp-q3-profit-tumbles-on-charges-outlook-raised-itt

Fluid technology specialist ITT Corporation (ITT) on Friday said that its third quarter profit plummeted 72% from last year, hurt by a big one-time asbestos charge.

The White Plains, New York-based company reported third quarter net income of $59 million, or 32 cents per share, compared with $216.3 million, or $1.17 per share, in the year-ago period. Excluding one-time items, adjusted profit was $1.03 per share, easily beating the average Wall Street analyst estimate for 89 cents per share.

Third quarter revenue fell 6% from last year, to $2.7 billion.

Looking ahead, the company raised its full-year earnings outlook to a range of $3.70 to $3.74 per share, up from prior guidance for $3.50 to $3.70 per share. Analysts currently expect $3.69 per share.

ITT Corp shares were mostly flat in premarket trading Friday.

The Bottom Line
We had removed shares of ITT from our “recommended” list last Sept.9, when the stock traded at $ 61.73. The company has a 1.56% dividend yield, based on last night’s closing stock price of $54.36. The stock has technical support in the $48-$51 price area. If the shares can firm up, we see overhead resistance around the $57-$60 price levels. We would remain on the sidelines for now.

ITT Corporation (ITT) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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Disclaimer: Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. The author is not registered as an investment adviser. The author may or may not hold positions in the securities mentioned in this article or video. The author relies upon the "publisher's exclusion" from the definition of "investment adviser" as provided under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws.