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Illinois Tool Gears Up to Report Q1 Earnings: What to Expect
ITWITW(ITW) ZACKS·2025-04-28 14:56

Core Viewpoint - Illinois Tool Works Inc. (ITW) is expected to report first-quarter 2025 results on April 30, with a consensus estimate indicating a decrease in both revenues and adjusted earnings compared to the previous year [1][2][7] Revenue and Earnings Estimates - The consensus estimate for revenues is 3.84billion,reflectinga3.33.84 billion, reflecting a 3.3% decline from the same quarter last year [2] - Adjusted earnings are estimated at 2.34 per share, which is a 4.1% decrease from the year-ago quarter [2] - Overall, total revenues are projected to be 3.9billion,indicatinga2.63.9 billion, indicating a 2.6% year-over-year decrease, while adjusted earnings are expected to decline by 13.5% to 2.37 per share [7] Segment Performance Insights - The Test & Measurement and Electronics segment is likely to benefit from recovery in the MTS Test & Simulation business and the semiconductor end market [3] - Growth in institutional end markets in North America and increased demand in European warewash and cooking markets are expected to drive the Food Equipment segment [3] - The Polymers & Fluids segment is anticipated to perform well due to rising demand in Europe, particularly in the life sciences market [3] - The Specialty Products segment is projected to see revenues of 445.6million,a1.3445.6 million, a 1.3% increase from the previous year, aided by strong performance in ground support equipment and consumer packaging [4] Challenges and Declines - The Automotive OEM segment is expected to face a revenue decline of 5.3% year-over-year to 772.8 million due to a decrease in North American auto build rates [5] - The Welding segment is also projected to see a revenue drop of 2.3% year-over-year to 465.1million,attributedtodecliningdemandinindustrialandcommercialmarkets[6]ForeigncurrencyheadwindsarelikelytonegativelyimpactITWsmarginsandprofitabilityduetoitssignificantinternationaloperations[6]EarningsPredictionThecompanyhasapositiveEarningsESPof+0.15465.1 million, attributed to declining demand in industrial and commercial markets [6] - Foreign currency headwinds are likely to negatively impact ITW's margins and profitability due to its significant international operations [6] Earnings Prediction - The company has a positive Earnings ESP of +0.15%, suggesting a potential earnings beat, with the most accurate estimate at 2.34 per share, slightly above the consensus estimate of $2.33 [8][9]