Illinois Tool Works Inc. (NYSE:ITW) is included among the 16 Best Dividend Stocks with Rising Payouts. Barclays Raises Illinois Tool Works (ITW) Price Target, Sees “Some Encouragement” in Outlook On February 9, Barclays analyst Julian Mitchell raised his price target on Illinois Tool Works Inc. (NYSE:ITW) to $275 from $244. The analyst reiterated an Underweight rating on the stock. He said the company’s outlook showed “some encouragement,” pointing to a few positive signs despite the cautious rating. E ...

Core Insights - Illinois Tool Works Inc. (ITW) is set to release its third-quarter 2025 results on October 24, with a consensus estimate for revenues at $4.08 billion, reflecting a 2.9% increase year-over-year, and adjusted earnings expected at $2.69 per share, indicating a 1.5% rise from the previous year [1][2][11] Revenue Segment Analysis - The Food Equipment segment is anticipated to see a revenue increase of 3.7% year-over-year to $701.9 million, driven by growth in institutional, restaurant, and food retail markets in North America, along with strong demand in Europe [3] - The Welding segment is expected to grow by 4.3% year-over-year to $481.8 million, supported by higher demand in the Asia Pacific and Middle East markets [4] - The Specialty Products segment is projected to increase by 2.8% year-over-year to $450.3 million, fueled by strong performance in ground support equipment, consumer packaging, and specialty films [5] - The Automotive OEM segment is forecasted to grow by 4.4% year-over-year to $805.8 million, benefiting from increased auto build rates and strength in the electric vehicle market in China [6] - The Polymers & Fluids segment is expected to see a modest revenue increase of 1% year-over-year to $452.4 million, despite challenges from lower demand in North America and Europe [7] - The Test & Measurement and Electronics segment is projected to grow by 2.3% year-over-year to $712.9 million, aided by demand in the semiconductor market [8] - The Construction Products segment is anticipated to decline by 0.5% year-over-year to $476.5 million due to lower demand in commercial and residential markets [9] Margin and Profitability Insights - ITW's gross margin is expected to increase by 40 basis points to 44.2% in the second quarter, supported by effective cost management and enterprise initiatives [9] - The company's significant international operations may face foreign currency headwinds, potentially impacting profitability [10] Earnings Prediction - ITW has an Earnings ESP of +0.35%, with the most accurate estimate at $2.70 per share, suggesting a likelihood of an earnings beat [12][13]

Core Viewpoint - Illinois Tool Works Inc. (ITW) is expected to report second-quarter 2025 results on July 30, with earnings estimates showing a positive trend and a history of surpassing consensus estimates [1][14]. Revenue and Earnings Estimates - The consensus estimate for revenues is $4.01 billion, reflecting a 0.4% decrease from the previous year [2]. - Adjusted earnings are estimated at $2.56 per share, indicating a 0.8% increase year over year [2]. Segment Performance Expectations - The Food Equipment segment is anticipated to see a revenue increase of 0.3% year over year to $668.8 million, driven by growth in institutional markets and strong demand in Europe [3]. - The Welding segment's revenues are expected to decline by 0.1% to $465.3 million, impacted by softness in industrial markets despite recovery in Asia Pacific and the Middle East [4]. - The Specialty Products segment is projected to decrease by 0.2% to $448.2 million, affected by weakness in the filter medical business [6]. - The Polymers & Fluids segment is expected to decline by 1.7% to $446.3 million, influenced by softness in body and tire repair businesses [6]. - The Automotive OEM segment is forecasted to decrease by 2.3% to $795.8 million due to a lower North American auto build rate [7]. - The Test & Measurement and Electronics segment is expected to see a revenue drop of 1.1% to $670.4 million, impacted by declining demand in the semiconductor market [8]. - The Construction Products segment is projected to decrease by 0.3% to $502.4 million, affected by lower demand in commercial and residential markets [10]. Margin and Cost Management - ITW's gross margin is expected to increase by 70 basis points to 44.5% due to effective cost management and enterprise initiatives [7][9]. Earnings Prediction - ITW has an Earnings ESP of +1.19%, suggesting a potential earnings beat, with the most accurate estimate at $2.59 per share [12].