• Revenue of $4.0 billion, a decrease of 1% with flat organic growth • Operating income of $1.05 billion, an increase of 4.5% • Operating margin of 26.2%, an increase of 140 bps as enterprise initiatives contributed 140 bps • GAAP EPS of $2.54, an increase of 2%; Excl. a one-time 2023 tax item, EPS increased 5% • Narrowing full year GAAP EPS guidance to a range of $10.30 to $10.40 per share Second quarter revenue of $4.0 billion declined by 1.2 percent as organic growth declined 0.1 percent. Foreign currenc ...

Revenue of $4.0 billion, a decrease of 1% with flat organic growth Operating income of $1.05 billion, an increase of 4.5% Operating margin of 26.2%, an increase of 140 bps as enterprise initiatives contributed 140 bps GAAP EPS of $2.54, an increase of 2%; Excl. a one-time 2023 tax item, EPS increased 5% Narrowing full year GAAP EPS guidance to a range of $10.30 to $10.40 per share GLENVIEW, Ill., July 30, 2024 (GLOBE NEWSWIRE) -- Illinois Tool Works Inc. (NYSE: ITW) today reported its second quarter 2024 re ...

"While the demand environment continued to moderate across our portfolio, we delivered a solid quarter with strong operational execution and profitability," said Christopher A. O'Herlihy, President and Chief Executive Officer. "Our ability to overcome near-term macro challenges and expand our margin and profitability to record levels as evidenced by margin improvement of 140 basis points to 26.2 percent and EPS growth of more than five percent, is a direct result of the focused execution by our team of dedi ...

Zacks Consensus Estimate Revenues are expected to be $4.09 billion, up 0.4% from the year-ago quarter. Earnings Whisper A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. How Have the Numbers Shaped Up for Illinois Tool Works? O ...

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In the past month, the Zacks Rank #3 (Hold) company has lost 4.6% compared with the industry's 6.7% decline. However, softness in the consumer electronics and semiconductor end markets is affecting revenues at Illinois Tool's Test & Measurement and Electronics segment (revenues down 0.9% year over year in the first quarter). Also, lower demand in North America and Asia Pacific is affecting the segment's electronics assembly businesses. ITW's focus on cost management and enterprise initiatives has been suppo ...

Illinois Tool Works in Focus ITW is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2024 is $10.22 per share, with earnings expected to increase 4.50% from the year ago period. Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. During periods of rising interest rates, income investors must be mindful that high-yie ...

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Investment Thesis - Illinois Tool Works Inc. (ITW) is expected to experience revenue growth due to easier year-over-year comparisons and stable underlying demand in upcoming quarters [2] - The Product Line Simplification initiative may impact sales in the Specialty Products business for a few more quarters, but it is anticipated to position the company for medium to long-term growth once completed [2][7] - Focus on Customer-Back Innovation and new product launches is expected to help ITW gain market share and grow revenues [2][8] - The company's valuation appears attractive compared to historical averages, supporting a buy rating on ITW stock [2] Revenue Analysis and Outlook - In Q1 2024, ITW's revenue declined by 1.1% year-over-year to $3.973 billion, with organic revenue declining by 0.6% year-over-year [3] - The Automotive OEM segment saw a revenue increase of 2.5% year-over-year, driven by 23.2% organic growth in China [3][10] - The Food Equipment segment experienced a revenue decline of 0.7% year-over-year, impacted by tough comparisons from a 16% organic growth in Q1 2023 [3][10] - The Specialty Products segment's revenue increased by 3.8% year-over-year, driven by higher equipment sales in Europe and North America [6][10] Margin Analysis and Outlook - In Q1 2024, ITW reported a 420 basis points year-over-year increase in operating margin to 28.4%, benefiting from a change in inventory accounting methods [12] - Operating margin expansion was observed across several segments, including 370 basis points in Automotive OEM and 390 basis points in Specialty Products [13] - The company expects margin improvement from operating leverage as organic sales growth recovers, with incremental margins typically ranging from 35-40% [12][16] Growth Agenda - ITW has set long-term organic growth targets of 4-7%, with contributions from market growth/pricing, net market penetration, and customer-back innovation [9][11] - The company is in the early stages of achieving these growth targets, with expectations for acceleration in revenue growth as product line simplification and innovation initiatives gain traction [9][20] Valuation - ITW is currently trading at a forward P/E of 24.52x for FY24 and 22.61x for FY25, which is lower than its 5-year average of 25.54x [17] - The company has a forward dividend yield of 2.25% and a strong track record of increasing dividends [17] - A potential re-rating of the P/E multiple is anticipated as growth improves, with a one-year forward target price of $281, indicating a 12.5% upside [18]