Key Highlights

● Fortive's revenue growth accelerated in the quarter.

● The company raised its adjusted EPS forecast for the year.

● Fortive continued buying back shares.

● Industrials were among the stronger sectors that session.

Fortive (NYSE:FTV) climbed on Wednesday, October 28, rising solidly on the S&P 500 after a quarterly report that showed its revenue growth picking up speed.

Reports differed on the size of the gain, with some snapshots during the day showing a larger move than others, but all agreed the stock finished firmly higher.

Growth Picks Up

The standout detail was acceleration. Fortive's revenue growth sped up in the quarter, according to market reports, a meaningful shift for a company whose businesses are tied to industrial and commercial spending cycles.

Fortive also raised its adjusted earnings per share forecast for the year and continued to buy back stock. That combination of faster growth, a higher profit outlook and capital returned to shareholders gave investors several reasons to bid the shares up.

What Fortive Does

Fortive makes professional instruments, software and workflow tools used by engineers, technicians and facility operators. Its portfolio includes test and measurement devices, sensing equipment and software that helps companies manage maintenance and safety.

The company's results tend to track the health of industrial customers, from manufacturers and utilities to health-care facilities. Accelerating sales suggest those customers are spending more freely on equipment and software.

A Beat-and-Raise Season for Industrials

Industrials were among the eight of 11 S&P 500 sectors that rose on Wednesday. Earnings season has been generous to companies that both beat expectations and lift their outlook. About 200 S&P 500 companies have reported so far, and a large majority have topped estimates, according to LSEG data.

Other industrial names posting raised outlooks included IDEX (NYSE:IEX), which edged higher after a record quarter, and Generac (NYSE:GNRC), which climbed on a long-term Amazon data-center deal. Not all were rewarded: Lennox (NYSE:LII) slid after cutting its earnings guidance, and Old Dominion Freight Line (NASDAQ:ODFL) fell as its trucking volumes slipped.

What to Watch

Technology and energy led the market, while utilities and real estate lagged as long-dated Treasury yields climbed. Breadth was narrow, with the equal-weight S&P 500 slipping slightly and volume below its 20-day average.

Caterpillar (NYSE:CAT) reports before Thursday's open, offering another major read on industrial demand, alongside Mastercard (NYSE:MA) and Merck (NYSE:MRK). The advance third-quarter GDP estimate and September PCE inflation data arrive at 8:30 a.m. ET on Thursday.