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. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 4.74%. A quarter ago, it was expected that this equipment manufacturer for the transportation, power, food and construction industries would post earnings of $2.45 per share when it actually produced earnings o ...

Revenue and Growth - Revenue of $4.0 billion, a decrease of 2% as organic growth declined 1%[1] - Total revenue for the nine months ended September 30, 2024, was $11,966 million, with an operating income of $3,233 million and an operating margin of 27.0%[14] Operating Performance and Margins - Operating margin of 26.5% with enterprise initiatives contributing 130 basis points[1] - Operating income was $1.05 billion, with six of seven segments expanding operating margin[4] - Operating margin is projected to be in the range of 26.5 to 27%, an improvement of 165 basis points at the midpoint[7] - Automotive OEM segment revenue for the nine months ended September 30, 2024, was $2,403 million, with an operating income of $469 million and an operating margin of 19.5%[14] - Food Equipment segment revenue for the nine months ended September 30, 2024, was $1,975 million, with an operating income of $537 million and an operating margin of 27.2%[14] - Test & Measurement and Electronics segment revenue for the nine months ended September 30, 2024, was $2,071 million, with an operating income of $501 million and an operating margin of 24.2%[14] - Welding segment revenue for the nine months ended September 30, 2024, was $1,404 million, with an operating income of $458 million and an operating margin of 32.6%[14] - Polymers & Fluids segment revenue for the nine months ended September 30, 2024, was $1,334 million, with an operating income of $364 million and an operating margin of 27.3%[14] - Construction Products segment revenue for the nine months ended September 30, 2024, was $1,471 million, with an operating income of $436 million and an operating margin of 29.6%[14] - Specialty Products segment revenue for the nine months ended September 30, 2024, was $1,327 million, with an operating income of $410 million and an operating margin of 30.9%[14] Earnings Per Share (EPS) and Net Income - GAAP EPS of $3.91 included a divestiture gain of $1.26; ex-gain EPS of $2.65, an increase of 4%[1] - Full year GAAP EPS guidance raised by $1.33 to a range of $11.63 to $11.73 per share[1] - Net income for the nine months ended September 30, 2024, was $2,738 million, compared to $2,240 million for the same period in 2023[17] - Net income for the twelve months ended December 31, 2023, was $2,957 million, with an after-tax return on average invested capital of 30.4%[24] - Adjusted net income per share diluted for the three months ended September 30, 2024, was $2.65, after adjusting for the impact of the sale of noncontrolling interest in Wilsonart[27] Cash Flow and Capital Management - Operating cash flow was $891 million, and free cash flow was $783 million, with a conversion rate to adjusted net income of 102%[5] - The company repurchased $375 million of its own shares and raised its dividend by 7% to an annualized $6.00 per share[5] - Free cash flow for the nine months ended September 30, 2023, was $2,176 million, with a free cash flow to net income conversion rate of 97%[26] - Net cash provided by operating activities for the nine months ended September 30, 2023, was $2,500 million, with a net cash to net income conversion rate of 112%[26] - Free cash flow for the three months ended September 30, 2024, was $783 million, with a free cash flow to net income conversion rate of 68% excluding certain discrete items[26] Divestitures and Tax Impact - Proceeds from the Wilsonart divestiture were $395 million, resulting in a pre-tax gain of $363 million and a favorable GAAP EPS impact of $1.26[6] - The effective tax rate for the third quarter was 14.9%[5] - Reported income taxes for the nine months ended September 30, 2023, were $656 million with a tax rate of 22.7%, adjusted to $676 million and 23.4% after including a discrete tax benefit of $20 million[23] - Effective tax rate for the year ended December 31, 2023, excluding the discrete tax benefit, was 23.2%[25] Return on Invested Capital - After-tax return on average invested capital for the nine months ended September 30, 2024, was 31.3%, compared to 30.5% for the same period in 2023[17] - Net income to average invested capital for the twelve months ended December 31, 2023, was 29.0%[24] - Average invested capital for the twelve months ended December 31, 2023, was $10,214 million[24] - Total invested capital as of December 31, 2023, was $10,112 million, including cash and equivalents of $1,065 million and debt of $8,164 million[24]

Core Insights - Illinois Tool Works Inc. (ITW) reported third quarter 2024 revenue of $4.0 billion, a decrease of 2% year-over-year, with organic growth declining by 1% [1][3] - The operating margin was 26.5%, with enterprise initiatives contributing 130 basis points [1][5] - GAAP EPS increased to $3.91, including a divestiture gain of $1.26; excluding this gain, EPS was $2.65, reflecting a 4% increase [1][4] - The company raised its full-year GAAP EPS guidance by $1.33 to a range of $11.63 to $11.73 per share [1][8] Financial Performance - Revenue for the third quarter was $4.0 billion, down 1.6% due to a 1.4% decline in organic growth, with foreign currency translation impacting revenue by 0.4% and acquisitions contributing 0.2% [3] - Operating income was $1.05 billion, with an operating margin of 26.5%, unchanged from the prior year; six of seven segments expanded their operating margins [5] - Operating cash flow was $891 million, and free cash flow was $783 million, with a conversion rate to adjusted net income of 102% [6] Divestiture Impact - The company completed the sale of its noncontrolling equity interest in Wilsonart, generating proceeds of $395 million and a pre-tax gain of $363 million, which positively impacted GAAP EPS by $1.26 [7][8] - The divestiture is not expected to materially affect the company's financial results in future quarters [7] Guidance and Future Outlook - ITW is maintaining its guidance for flat revenue and organic growth for 2024, with an operating margin projected between 26.5% and 27% [8] - The company plans to repurchase approximately $1.5 billion of its own shares and has raised its dividend by 7% to an annualized $6.00 per share [6][8] Segment Performance - In the third quarter, the Automotive OEM segment reported revenue of $772 million with an operating margin of 19.4%, while Food Equipment generated $677 million with a margin of 28.4% [19] - Specialty Products segment saw a revenue increase of 6.0%, while Construction Products experienced a decline of 8.8% [21]

In its upcoming report, Illinois Tool Works (ITW) is predicted by Wall Street analysts to post quarterly earnings of $2.52 per share, reflecting a decline of 1.2% compared to the same period last year. Revenues are forecasted to be $4.02 billion, representing a year-over-year decrease of 0.3%. The consensus EPS estimate for the quarter has undergone a downward revision of 1.3% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their ...

GLENVIEW, Ill., Oct. 04, 2024 (GLOBE NEWSWIRE) -- Illinois Tool Works Inc. (NYSE: ITW) will issue its third quarter 2024 results on Wednesday, October 30, 2024 at 7:00 a.m. CDT. Following the release, ITW will hold its third quarter 2024 earnings webcast at 9:00 a.m. CDT. To access the webcast for the event, please click on the following link: ITW Q3 2024 Earnings Webcast If you are a participant on the conference call, please dial 1-888-660-6652 (domestic) or 1-646-960-0554 (international) 10 minutes prior ...

Many different investing styles are deployed, as investors have their individual preferences. Still, market participants typically gravitate toward one of three strategies: income, growth, or value. Each style caters to different investor profiles. Income investors seek passive income from dividend payouts or other income-generating assets, growth investors seek to reap market-beating gains from companies expected to grow at an above-average level, and value investors look for discounted market opportunitie ...

Investing in equal parts of these five stocks produces an average dividend yield of 3%. The broader stock market continues to roar higher, with the S&P 500 index now up 46% since the start of 2023. But some investors may be looking to take their foot off the gas and put new capital to work in safe stocks. Coca-Cola (KO 0.58%), PepsiCo (PEP 0.46%), and Kenvue (KVUE 0.92%) are three consumer staples companies that pay sizable dividends. Illinois Tool Works (ITW 1.09%) and Target (TGT 0.13%) can be more cyclic ...

Illinois Tool Works Inc. (ITW) has been benefiting from positive momentum in the Automotive Original Equipment Manufacturer (OEM) segment driven by strength in the electric vehicles market and higher content in the Chinese OEM market. Organic revenues from the segment increased 1.9% in the first six months of 2024. The company is also experiencing strength in the Specialty Products segment, driven by increased equipment sales in the aerospace sector, primarily in Europe and North America. Organic revenues f ...

ITW's track record for returning capital to shareholders makes up for its lackluster sales growth. Dividend Kings are an elite category of companies that have paid and raised their dividends for at least 50 years. It's an honorable title. But not all Dividend Kings have what it takes to pay and raise their dividends for the next 50 years. Illinois Tool Works (ITW -0.63%) stands out as one the highest-quality Dividend Kings. It's the elite of the elite when it comes to growing payouts to investors. But its s ...

GLENVIEW, Ill., Aug. 02, 2024 (GLOBE NEWSWIRE) -- The Board of Directors of Illinois Tool Works Inc. (NYSE: ITW) authorized a seven percent increase to the dividend payout to shareholders, representing a quarterly increase of $0.10 per share – or $0.40 per share annually – versus the current dividend rate. The Board also declared a dividend on the company's common stock of $1.50 per share for the third quarter of 2024. The dividend equates to $6.00 per share on a full-year basis. The dividend will be paid o ...