What factors contributed to ITT's positive EPS surprises in 2024?

ITT's positive EPS surprises in 2024 can be attributed to several key factors:

1. Revenue Growth: ITT experienced an increase in sales across most of its segments, which contributed to the higher earnings. This was evident in both the third and fourth quarters of 2024, where revenue surpassed expectations.
2. Profit Margin Improvement: The company's profit margin improved, driven by higher revenue. This led to a higher net income and, consequently, a higher EPS. ITT's profit margin increased from 13% in 2023 to 14% in the full year 2024, and from 14% in Q3 2023 to 18% in Q4 2024.
3. Divestiture Gains: ITT benefited from gains on divestitures, such as the sale of Wolverine Advanced Materials. For example, in Q3 2024, the company reported a gain on the divestiture of Wolverine Advanced Materials, which contributed to the higher EPS.
4. Operational Efficiency: ITT's operational efficiency likely played a role in its positive EPS surprises. The company's focus on cost management and productivity improvements could have led to better financial outcomes.

In summary, ITT's positive EPS surprises in 2024 were primarily driven by revenue growth, profit margin improvement, divestiture gains, and operational efficiency. These factors combined to deliver stronger-than-expected earnings, reflecting the company's solid financial performance and strategic initiatives.