ITW gains from strength across markets, enterprise initiatives and shareholder-friendly moves. Softness in the MTS test & simulation business persists.
Buying stocks when they are trading near their all-time highs is never easy. Our instincts tell us that paying a high price for something is a bad deal.
Illinois Tool Works (ITW) reported earnings 30 days ago. What's next for the stock?
Illinois Tool Works Inc. has strong growth prospects driven by Customer-Back Innovation (CBI) and efficient R&D, which is helping it gain share and enhancing pricing power. The company's margin outlook is positive, benefiting from operating leverage, cost reduction strategies, and a better margin mix due to divestitures. ITW is trading at a slight discount to its historical average P/E, offering a reasonable upside with a potential total return of ~11-12%.
ITW is set to benefit from strong momentum in the OEM and Specialty Products segments. However, forex woes remain concerning.
Illinois Tool Works has a long history of providing investors with healthy returns. The company has respectable financial metrics including a growing revenue per share figure, a stable gross profit margin and a growing return on invested capital. Dividend growth has slowed recently but is still high enough to outpace inflation.
Illinois Tool Works Inc. (NYSE:ITW ) Q3 2024 Earnings Conference Call October 30, 2024 10:00 AM ET Company Participants Erin Linnihan - VP, IR Chris O'Hairlehy - President and CEO Michael Larsen - SVP and CFO Conference Call Participants Jeff Sprague - Vertical Research Partners Jamie Cook - Truist Securities Andy Kaplowitz - Citi Group Tami Zakaria - J.P. Morgan Joe O'Dea - Wells Fargo Sabrina Abrams - Bank of America Merrill Lynch Julian Mitchell - Barclays Adam Farley - Stifel Operator Good morning.
ITW's third-quarter 2024 revenues decline 1.6% year over year, due to lackluster performance across most of its segments.
While the top- and bottom-line numbers for Illinois Tool Works (ITW) give a sense of how the business performed in the quarter ended September 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Illinois Tool Works (ITW) came out with quarterly earnings of $2.65 per share, beating the Zacks Consensus Estimate of $2.53 per share. This compares to earnings of $2.55 per share a year ago.
ITW's third-quarter results are likely to gain from strength across the Automotive OEM and Specialty Products units. Softness in the Welding segment is expected to weigh on results.
Looking beyond Wall Street's top -and-bottom-line estimate forecasts for Illinois Tool Works (ITW), delve into some of its key metrics to gain a deeper insight into the company's potential performance for the quarter ended September 2024.