Manufacturing company Illinois Tool Works (NYSE: ITW) will be reporting results this Wednesday before the bell. Here’s what investors should know.
Illinois Tool Works met analysts’ revenue expectations last quarter, reporting revenues of $3.84 billion, down 3.4% year on year. It was a slower quarter for the company, with a miss of analysts’ adjusted operating income estimates and 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.
This quarter, analysts are expecting Illinois Tool Works’s revenue to be flat year on year at $4.02 billion, in line with the 1.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.57 per share.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing 8 upward revisions over the last 30 days (we track 14 analysts).
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 21.2%, beating analysts’ expectations by 15.6%, and Honeywell reported revenues up 8.1%, topping estimates by 2.8%. GE Aerospace traded down 1.1% following the results while Honeywell was also down 6.4%.
Read our full analysis of GE Aerospace’s results here and Honeywell’s results here.
There has been positive sentiment among investors in the general industrial machinery segment, with share prices up 6.5% on average over the last month. Illinois Tool Works is up 5.2% during the same time and is heading into earnings with an average analyst price target of $254.09 (compared to the current share price of $260).
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