ITT posts higher 2Q earnings, flat revenue

Defense contractor ITT Corp. said Friday its second-quarter net income got a boost from better operating margins with revenue nearly flat.

The company earned $238 million, or $1.28 per share, up 18 percent from $201 million, or $1.10 per share, in the same period a year earlier.

Revenue was $2.74 billion, up less than 1 percent.

Adjusted earnings were $1.14 per share in the latest quarter excluding gains related to a tax audit.

Analysts, on average, were expecting a profit of $1.07 per share on revenue of $2.83 billion, according to a poll by Thomson Reuters.

ITT said it plans to divest CAS Inc., part of its defense and information solutions unit. It classified the business as discontinued operations.

ITT forecast third-quarter adjusted earnings of 94 to 98 cents per share on revenue of $2.7 billion, short of analyst expectations of $1.10 per share on revenue of $2.85 billion.

Before the market opened, the company's stock fell 92 cents to $49 in electronic trading.

For the full year, the company expects adjusted earnings of $4.08 to $4.18 per share on revenue of $11 billion. Analysts are predicting earnings of $4.20 per share on revenue of $11.83 billion.