Illinois Tool Works (ITW) Tops Q2 Earnings Estimates

Core Insights - Illinois Tool Works (ITW) reported quarterly earnings of $2.54 per share, exceeding the Zacks Consensus Estimate of $2.45 per share, and up from $2.41 per share a year ago [1][2] - The company posted revenues of $4.03 billion for the quarter, missing the Zacks Consensus Estimate by 1.38% and down from $4.07 billion year-over-year [3] - The stock has underperformed the market, losing about 5.3% since the beginning of the year compared to the S&P 500's gain of 14.5% [4] Earnings Performance - The earnings surprise for the quarter was 3.67%, with the company having surpassed consensus EPS estimates in all of the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is $2.58, with expected revenues of $4.13 billion, and for the current fiscal year, the consensus EPS is $10.14 on revenues of $16.31 billion [8] Market Outlook - The estimate revisions trend for Illinois Tool Works is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [7] - The Manufacturing - General Industrial industry, to which ITW belongs, is ranked in the bottom 41% of over 250 Zacks industries, suggesting potential challenges ahead [9] Competitor Insights - Markforged Holding Corporation (MKFG), another company in the same industry, is expected to report a quarterly loss of $0.06 per share, with revenues projected at $21.76 million, down 14.5% year-over-year [10]