Manufacturing company Illinois Tool Works (NYSE: ITW) will be announcing earnings results this Thursday before the bell. Here’s what to expect.
Illinois Tool Works beat analysts’ revenue expectations last quarter, reporting revenues of $4.09 billion, up 4.1% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ revenue estimates but full-year EPS guidance slightly missing analysts’ expectations.
Is Illinois Tool Works a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Illinois Tool Works’s revenue to grow 4.4% year on year, a reversal from the 3.4% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Illinois Tool Works has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Illinois Tool Works’s peers in the general industrial machinery segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Crane delivered year-on-year revenue growth of 24.9%, beating analysts’ expectations by 3.8%, and GE Aerospace reported revenues up 29%, topping estimates by 8.3%. Crane traded down 2.9% following the results while GE Aerospace was also down 9%.
Read our full analysis of Crane’s results here and GE Aerospace’s results here.
There has been positive sentiment among investors in the general industrial machinery segment, with share prices up 14.1% on average over the last month. Illinois Tool Works is up 4.8% during the same time and is heading into earnings with an average analyst price target of $275.88 (compared to the current share price of $268.51).
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