Illinois Tool Works (ITW) Earnings Expected to Grow: Should You Buy?

Core Viewpoint - The market anticipates Illinois Tool Works (ITW) to report a year-over-year increase in earnings despite a decline in revenues for the quarter ending June 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - ITW is expected to report quarterly earnings of $2.56 per share, reflecting a year-over-year increase of +0.8%, while revenues are projected to be $4 billion, a decrease of 0.6% from the previous year [3]. - The consensus EPS estimate has been revised 0.63% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - The Most Accurate Estimate for ITW is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +1.19%, suggesting a bullish outlook on the company's earnings prospects [12]. - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3, which increases the likelihood of a positive surprise to nearly 70% [10]. Historical Performance - In the last reported quarter, ITW exceeded the expected earnings of $2.34 per share by delivering $2.38, resulting in a surprise of +1.71% [13]. - Over the past four quarters, ITW has consistently beaten consensus EPS estimates [14]. Conclusion - ITW is positioned as a compelling candidate for an earnings beat, but investors should consider additional factors influencing stock performance beyond just earnings results [17].