Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric th ...

A downtrend has been apparent in Illinois Tool Works (ITW) lately with too much selling pressure. The stock has declined 5.7% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.Guide to Identifying Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, ...

GLENVIEW, Ill., April 11, 2024 (GLOBE NEWSWIRE) -- Illinois Tool Works Inc. (NYSE:ITW) will issue its first quarter 2024 results on Tuesday, April 30, 2024 at 7:00 a.m. CDT. Following the release, ITW will hold its first quarter 2024 earnings webcast at 9:00 a.m. CDT. To access the webcast for the event, please click on the following link:ITW Q1 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 to t ...

GLENVIEW, Ill., April 11, 2024 (GLOBE NEWSWIRE) -- Illinois Tool Works Inc. (NYSE: ITW) will issue its first quarter 2024 results on Tuesday, April 30, 2024 at 7:00 a.m. CDT. Following the release, ITW will hold its first quarter 2024 earnings webcast at 9:00 a.m. CDT. To access the webcast for the event, please click on the following link:ITW Q1 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 to ...

Illinois Tool Works Inc. (ITW) has been benefiting from strength in the Automotive OEM (Original Equipment Manufacturer) segment and enterprise initiatives despite continued softness in the semiconductor end market and foreign currency woes.What’s Aiding ITW?Business Strength: Illinois Tool has been benefiting from stable underlying demand and improving supply chains. Strong market share and penetration gains in the rapidly growing EV market are boosting revenues in the Automotive OEM segment. The Food Equi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-4797 ILLINOIS TOOL WORKS INC. (Exact Name of Registrant as Specified in its Charter) (State or Other Jurisdiction of Incorporation or Organization) ( ...

Illinois Tool Works Inc. (NYSE:ITW) Q4 2023 Earnings Conference Call February 1, 2024 10:00 AM ET Company Participants Karen Fletcher - Vice President of Investor Relations Christopher O'Herlihy - President and Chief Executive Officer Michael Larsen - Senior Vice President and Chief Financial Officer Conference Call Participants Tami Zakaria - JPMorgan Chase & Co. Stephen Volkmann - Jefferies Andrew Kaplowitz - Citigroup Inc. Joseph O'Dea - Wells Fargo Securities, LLC Sabrina Abrams - Bank of America Steven ...

February 1, 2024 Non-GAAP Measures Fourth Quarter 2023 Earnings Conference Call Safe Harbor Statement The Company uses certain non-GAAP measures in discussing the Company's performance. The reconciliation of those measures to the most directly comparable GAAP measures is detailed in ITW's press release for the fourth quarter of 2023, which is available at www.itw.com, together with this presentation. The estimated guidance of free cash flow to net income conversion rate and after-tax return on average inves ...

Financial Performance - Operating revenue for Q3 2023 was $4,031 million, a slight increase of 0.5% compared to $4,011 million in Q3 2022[14] - Net income for Q3 2023 reached $772 million, up 6.2% from $727 million in Q3 2022[17] - Basic net income per share increased to $2.55 in Q3 2023, compared to $2.36 in Q3 2022, reflecting a growth of 8.1%[14] - Comprehensive income for Q3 2023 was $690 million, significantly higher than $522 million in Q3 2022, marking a 32.2% increase[17] - Net income for the nine months ended September 30, 2023, was $2,240 million, an increase of 5.3% compared to $2,127 million in 2022[25] - Total operating revenue for the nine months ended September 30, 2023, was $12,124 million, up 1.4% from $11,961 million in 2022[31] - Operating income for Q3 2023 was $1.070 billion, an 8.9% increase from $983 million in Q3 2022[81] - Operating income for the nine months ended September 30, 2023, was $3,052 million, reflecting an 8.8% increase from $2,804 million in 2022[83] Assets and Liabilities - Total current assets as of September 30, 2023, were $6,288 million, slightly up from $6,270 million at the end of 2022[20] - Cash and equivalents increased to $990 million in Q3 2023, compared to $708 million at the end of 2022[20] - Total liabilities decreased to $12,391 million as of September 30, 2023, down from $12,333 million at the end of 2022[20] - Long-term debt increased to $6,818 million as of September 30, 2023, compared to $6,173 million at the end of 2022[20] - Total debt increased from $7,763 million as of December 31, 2022, to $8,066 million as of September 30, 2023, with short-term debt comprising $1,248 million[50] - Net working capital as of September 30, 2023, was $2,306 million, an increase of $496 million compared to $1,810 million as of December 31, 2022[129] Cash Flow and Investments - Net cash provided by operating activities increased to $2,500 million from $1,537 million, representing a growth of 62.5% year-over-year[25] - The company reported a net cash used for investing activities of $(283) million, compared to $(237) million in the same period last year[25] - Free cash flow for Q3 2023 was $856 million, up from $612 million in Q3 2022, while year-to-date free cash flow was $2,176 million compared to $1,281 million[121] Dividends and Share Repurchase - The company declared dividends of $1.40 per share in Q3 2023, totaling $422 million[21] - Cash dividends paid during the nine months ended September 30, 2023, totaled $1,194 million, compared to $1,139 million in 2022, marking a 4.8% increase[25] - The company announced a new stock repurchase program on August 4, 2023, allowing for the repurchase of up to $5.0 billion of common stock[125] - The company repurchased approximately 1.6 million shares for about $375 million in Q3 2023, totaling 4.8 million shares for $1.1 billion year-to-date[88] Segment Performance - Automotive OEM segment revenue for the nine months ended September 30, 2023, was $2,421 million, a 8.9% increase from $2,224 million in 2022[31] - Food Equipment segment revenue rose to $1,967 million, reflecting a 8.5% increase compared to $1,813 million in the previous year[31] - Operating revenue in the Automotive OEM segment increased by 6.0% in Q3 2023, with operating income rising by 14.5%[91] - Operating revenue for the Food Equipment segment increased by 7.2% to $678 million in Q3 2023, compared to $633 million in Q3 2022[94] - Operating revenue for the Welding segment declined by 1.8% to $468 million in Q3 2023, compared to $477 million in Q3 2022[107] Tax and Interest - The effective tax rate for the nine months ended September 30, 2023, was 23.4%, compared to 23.7% for the same period in 2022[128] - The effective tax rate for Q3 2023 was 23.8%, slightly down from 23.9% in Q3 2022[88] - Interest expense rose to $67 million in Q3 2023 from $52 million in Q3 2022, attributed to higher interest rates[117] Other Financial Metrics - The total debt to EBITDA ratio remained stable at 1.8 for the trailing twelve months ended September 30, 2023, consistent with the ratio as of December 31, 2022[136] - After-tax return on average invested capital was 31.9% for Q3 2023, compared to 29.9% in Q3 2022[127] - The company has a $3.0 billion revolving credit facility with no amounts outstanding as of September 30, 2023[135]

Financial Data and Key Metrics Changes - Operating margin improved by 200 basis points year-over-year to 26.5%, with enterprise initiatives contributing 140 basis points [10][34] - Quarterly operating income grew by 9% to $1.1 billion, and GAAP EPS increased by 9% to $2.55 [10][12] - Free cash flow rose by 40% to $856 million, with a conversion to net income of 111% [35] Business Line Data and Key Metrics Changes - Automotive OEM organic growth was 4%, with North America down 5%, Europe up 5%, and China up 18% [36] - Food Equipment achieved solid organic growth of 6%, with North America growing 10% [37] - Welding's organic revenue declined by 2%, with equipment revenue down 3% [38] - Construction organic revenue was down 2%, with North America growing 2% [39] - Specialty Products saw organic revenue down 6%, with North America down 9% [40] Market Data and Key Metrics Changes - North America revenue was down 3%, while international revenue was essentially flat [16] - Organic revenue growth by geography showed North America down 2%, Europe flat, and Asia Pacific up 6% [13] Company Strategy and Development Direction - The company aims to elevate high-quality organic growth and customer-back innovation as key differentiators [9] - The focus remains on leveraging ITW's unique strengths and capabilities to optimize long-term performance [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged uncertainties in the demand environment, including inventory normalization and elevated interest rates [42] - The company is projecting organic growth of 2% to 3% for the full year and has raised its operating margin guidance to 25% to 25.5% [41][18] Other Important Information - The company announced a CEO succession plan, with Chris O'Herlihy set to take over at year-end [6] - The impact of the auto strike is estimated to reduce Q4 earnings by $0.12 per share [14] Q&A Session Summary Question: What contributed to the operating margin expansion? - The operating margin expansion of 200 basis points was driven by enterprise initiatives and positive price/cost impacts, with some headwinds from investments in labor and compensation [51][67] Question: What is the outlook for price versus cost in 2024? - There is no significant deflation expected, but inflation levels have stabilized, indicating a tight environment for pricing [61] Question: How is the company managing inventory levels? - The company is currently running slightly above three months of inventory, with expectations to normalize by early to mid-next year [118] Question: What is the impact of the auto strike on Q4? - The $0.12 headwind from the auto strike assumes it continues through the end of the quarter, affecting organic growth [69] Question: How is the company performing in the Electronics segment? - The consumer electronics market remains weak, but the company is committed to investing in these businesses for future recovery [77][110]