Manufacturing company Illinois Tool Works (NYSE:ITW) will be reporting earnings this Tuesday before the bell. Here’s what you need to know.
Illinois Tool Works missed analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $4.06 billion, up 2.3% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but a slight miss of analysts’ revenue estimates.
Is Illinois Tool Works a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Illinois Tool Works’s revenue to grow 3.3% year on year to $4.06 billion, a reversal from the 1.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.69 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Illinois Tool Works has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Illinois Tool Works’s peers in the general industrial machinery segment, some have already reported their Q4 results, giving us a hint as to what we can expect. GE Aerospace delivered year-on-year revenue growth of 17.6%, beating analysts’ expectations by 13.9%, and Crane reported revenues up 6.8%, topping estimates by 1.9%. GE Aerospace traded down 7.7% following the results while Crane was also down 11.5%.
Read our full analysis of GE Aerospace’s results here and Crane’s results here.
There has been positive sentiment among investors in the general industrial machinery segment, with share prices up 5.1% on average over the last month. Illinois Tool Works is up 4.7% during the same time and is heading into earnings with an average analyst price target of $262.97 (compared to the current share price of $261.31).
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