ITW Earnings Prediction
The chart below shows how ITW performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ITW sees a -2.10% change in stock price 10 days leading up to the earnings, and a +0.04% change 10 days following the report. On the earnings day itself, the stock moves by -0.31%. This data can give you a slight idea of what to expect for the next quarter's release.
ITW Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
3.97B
-1.61%
-1.51%
Gross Margin
43.12%
3.16%
-0.21%
Operating Margin
26.53%
-0.04%
1.38%
Net Margin
29.25%
52.74%
55.17%
EPS
3.91
53.33%
53.94%
No Data Available
ITW Earnings Analysis
Illinois Tool Works Inc. Corporation (ITW.N) Earnings Conference Call
Positive
Operating Income Expansion: 1. Strong Operating Income: ITW achieved an operating income of $1.05 billion with an operating margin of 26.5%, reflecting a 110 basis point expansion in segment operating margin year-over-year.
EPS Guidance Increase: 2. Increased EPS Guidance: The company raised its full-year GAAP EPS guidance by $1.33, now projecting a range of $11.63 to $11.73, driven by a divestiture gain and a lower projected tax rate.
Dividend Increase Announcement: 3. Consistent Dividend Growth: ITW announced its 61st consecutive dividend increase, raising the annualized payout by 7% to $6 per share, demonstrating a strong commitment to returning capital to shareholders.
Strong Cash Generation: 4. Robust Free Cash Flow: The company generated free cash flow of $783 million, representing a 102% conversion of adjusted net income, indicating strong cash generation capabilities.
Segment Margin Improvement: 5. Segment Margin Expansion: Six of the seven segments reported increased operating margins, with three segments achieving margins above 30%, showcasing effective cost management and operational excellence.
Negative
Organic Revenue Decline: 1. Decline in Organic Revenue: Third quarter organic revenue declined by 1%, with five segments down year-over-year, indicating ongoing market challenges.
Market Softness Impact: 2. Softness in Key Markets: The Automotive and Construction markets experienced further softness, contributing to a total revenue decline of 1.6% in Q3.
Construction Products Decline: 3. Negative Impact from Construction Products: Organic revenue in Construction products fell by 9%, with new housing starts down 10% on an annualized basis, reflecting significant market weakness.
North America Demand Decline: 4. Stagnant Demand in North America: Organic revenue in North America declined approximately 3%, highlighting a challenging demand environment across multiple segments.
Food Equipment Stagnation: 5. Limited Growth in Food Equipment: Organic revenue in Food Equipment was flat against a tough comp of 6% growth last year, indicating stagnation in this segment.
ITW FAQs
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ITW Earning Call Sentiment
Illinois Tool Works Inc. (ITW) Q3 2024 Earnings Conference Call Transcript
1.0x
00:00
00:00
ITW.N
1.74%Positive
The earnings call shows mixed signals: strong GAAP EPS growth and a dividend increase are positive, but flat organic revenue and lowered EPS guidance are concerns. The Q&A reveals optimism in China and Specialty segments but highlights construction market challenges. Raised operating margin guidance and solid free cash flow are positives, yet the flat revenue outlook and declining automotive builds weigh negatively. Overall, the sentiment is balanced, leading to a neutral stock price prediction over the next two weeks.