Manufacturing company Illinois Tool Works (NYSE: ITW) will be reporting results this Tuesday before market open. Here’s what to look for.
Illinois Tool Works met analysts’ revenue expectations last quarter, reporting revenues of $4.02 billion, up 4.6% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but a slight miss of analysts’ organic revenue estimates.
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 3.3% year on year, improving from its flat revenue 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 will 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 Q2 results, giving us a hint as to what we can expect. GE Aerospace delivered year-on-year revenue growth of 24.5%, beating analysts’ expectations by 6%, and 3M reported revenues up 5.6%, topping estimates by 1.5%. GE Aerospace traded down 3.2% following the results while 3M was up 7.3%.
Read our full analysis of GE Aerospace’s results here and 3M’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the general industrial machinery stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.5% on average over the last month. Illinois Tool Works is up 5.8% during the same time and is heading into earnings with an average analyst price target of $280.05 (compared to the current share price of $283.02).
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