Illinois Tool Works Inc. (ITW) Expected to Announce Earnings of $1.89 Per Share

Wall Street brokerages expect Illinois Tool Works Inc. (NYSE:ITW) to announce $1.89 earnings per share (EPS) for the current fiscal quarter, according to Zacks. Seven analysts have issued estimates for Illinois Tool Works’ earnings. The lowest EPS estimate is $1.87 and the highest is $1.90. Illinois Tool Works posted earnings per share of $1.71 during the same quarter last year, which would suggest a positive year over year growth rate of 10.5%. The firm is expected to report its next quarterly earnings report before the market opens on Wednesday, October 24th.

On average, analysts expect that Illinois Tool Works will report full-year earnings of $7.63 per share for the current fiscal year, with EPS estimates ranging from $7.57 to $7.68. For the next year, analysts expect that the company will post earnings of $8.25 per share, with EPS estimates ranging from $7.90 to $8.50. Zacks Investment Research’s EPS calculations are an average based on a survey of research firms that follow Illinois Tool Works.

Illinois Tool Works (NYSE:ITW) last posted its quarterly earnings results on Monday, July 23rd. The industrial products company reported $1.97 EPS for the quarter, meeting the consensus estimate of $1.97. Illinois Tool Works had a net margin of 12.70% and a return on equity of 56.74%. The business had revenue of $3.83 billion for the quarter, compared to analysts’ expectations of $3.85 billion. During the same period in the previous year, the company posted $1.69 EPS. Illinois Tool Works’s revenue was up 6.4% on a year-over-year basis.

Several research analysts have recently issued reports on ITW shares. Zacks Investment Research upgraded shares of Illinois Tool Works from a “hold” rating to a “buy” rating and set a $158.00 price objective on the stock in a report on Wednesday, June 27th. Goldman Sachs Group reissued a “neutral” rating on shares of Illinois Tool Works in a research note on Tuesday, July 24th. Robert W. Baird decreased their price objective on shares of Illinois Tool Works from $155.00 to $141.00 and set a “hold” rating on the stock in a research note on Tuesday, July 24th. ValuEngine cut shares of Illinois Tool Works from a “hold” rating to a “sell” rating in a research note on Monday, July 2nd. Finally, Deutsche Bank set a $152.00 target price on shares of Illinois Tool Works and gave the stock a “hold” rating in a research report on Thursday, July 12th. Two analysts have rated the stock with a sell rating, thirteen have issued a hold rating and five have issued a buy rating to the stock. The stock has an average rating of “Hold” and an average target price of $158.94.

In other Illinois Tool Works news, Director Richard H. Lenny purchased 1,778 shares of the firm’s stock in a transaction on Friday, July 27th. The stock was acquired at an average price of $140.85 per share, for a total transaction of $250,431.30. The purchase was disclosed in a legal filing with the SEC, which is available at this link. Insiders own 0.82% of the company’s stock.

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Bank of America Corp DE lifted its holdings in Illinois Tool Works by 1.6% during the second quarter. Bank of America Corp DE now owns 5,875,087 shares of the industrial products company’s stock valued at $813,935,000 after purchasing an additional 93,269 shares during the last quarter. Bank of New York Mellon Corp raised its stake in Illinois Tool Works by 1.1% in the second quarter. Bank of New York Mellon Corp now owns 3,972,642 shares of the industrial products company’s stock valued at $550,369,000 after purchasing an additional 44,036 shares in the last quarter. Janus Henderson Group PLC raised its stake in Illinois Tool Works by 7.3% in the second quarter. Janus Henderson Group PLC now owns 3,774,594 shares of the industrial products company’s stock valued at $522,934,000 after purchasing an additional 257,819 shares in the last quarter. OppenheimerFunds Inc. raised its stake in Illinois Tool Works by 28.3% in the second quarter. OppenheimerFunds Inc. now owns 1,584,305 shares of the industrial products company’s stock valued at $219,489,000 after purchasing an additional 349,717 shares in the last quarter. Finally, Legal & General Group Plc raised its stake in Illinois Tool Works by 3.3% in the second quarter. Legal & General Group Plc now owns 1,563,505 shares of the industrial products company’s stock valued at $216,679,000 after purchasing an additional 49,404 shares in the last quarter. Hedge funds and other institutional investors own 76.09% of the company’s stock.

ITW stock opened at $128.43 on Friday. The firm has a market capitalization of $47.33 billion, a P/E ratio of 19.49, a price-to-earnings-growth ratio of 1.81 and a beta of 1.22. The company has a debt-to-equity ratio of 1.60, a current ratio of 1.73 and a quick ratio of 1.35. Illinois Tool Works has a 1 year low of $126.68 and a 1 year high of $179.07.

The business also recently announced a quarterly dividend, which was paid on Tuesday, October 9th. Investors of record on Friday, September 28th were given a dividend of $1.00 per share. This represents a $4.00 dividend on an annualized basis and a dividend yield of 3.11%. The ex-dividend date of this dividend was Thursday, September 27th. This is an increase from Illinois Tool Works’s previous quarterly dividend of $0.78. Illinois Tool Works’s payout ratio is presently 60.70%.

Illinois Tool Works declared that its board has initiated a share buyback plan on Friday, August 3rd that authorizes the company to buyback $3.00 billion in outstanding shares. This buyback authorization authorizes the industrial products company to buy up to 6.4% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s leadership believes its shares are undervalued.

Illinois Tool Works Company Profile

Illinois Tool Works Inc manufactures and sells industrial products and equipment worldwide. It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products. The Automotive OEM segment offers plastic and metal components, fasteners, and assemblies for automobiles, light trucks, and other industrial uses.

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Earnings History and Estimates for Illinois Tool Works (NYSE:ITW)

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