Manufacturing company Illinois Tool Works (NYSE: ITW) will be reporting earnings tomorrow before market open. Here’s what to look for.
Illinois Tool Works missed analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $3.97 billion, down 1.6% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EPS estimates but a 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.
This quarter, analysts are expecting Illinois Tool Works’s revenue to be flat year on year at $3.99 billion, in line with its flat revenue from the same quarter last year. Adjusted earnings are expected to come in at $2.50 per share.
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 six times over the last two years.
Looking at Illinois Tool Works’s peers in the general industrial machinery segment, some have already reported their Q4 results, giving us a hint as to what we can expect. GE Aerospace delivered year-on-year revenue growth of 4.5%, beating analysts’ expectations by 3.9%, and Crane reported revenues up 12.3%, topping estimates by 1.2%. GE Aerospace traded up 4.5% following the results while Crane was also up 12.3%.
Read our full analysis of GE Aerospace’s results here and Crane’s results here.
Investors in the general industrial machinery segment have had steady hands going into earnings, with share prices flat over the last month. Illinois Tool Works is up 2% during the same time and is heading into earnings with an average analyst price target of $264.04 (compared to the current share price of $255.44).
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