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 -1.06% change in stock price 10 days leading up to the earnings, and a -0.10% change 10 days following the report. On the earnings day itself, the stock moves by -0.21%. 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
3.93B
-1.28%
-0.86%
Gross Margin
42.88%
3.75%
-0.56%
Operating Margin
26.22%
5.68%
-1.17%
Net Margin
19.07%
5.94%
-34.80%
EPS
2.54
6.72%
-35.04%
No Data Available
ITW Earnings Analysis
Illinois Tool Works Inc Corporation (ITW.N) Earnings Conference Call
Positive
Earnings Per Share Beat: Illinois Tool Works Inc. reported a GAAP EPS of $2.54, exceeding expectations of $2.49, marking a 7% improvement year-over-year.
Operating Income Increase: Operating income reached $1.03 billion, a 4% increase despite total revenues declining over 1%, demonstrating effective operational execution.
Operating Margin Achievement: Record operating margin of 26.2% was achieved, reflecting a 140 basis point increase driven by enterprise initiatives contributing 120 basis points.
Free Cash Flow Surge: Free cash flow increased by 10% to a quarterly record of $1 billion, with a conversion to net income of 133%, showcasing strong working capital management.
Dividend Increase and Shareholder Returns: The company raised its dividend by 7%, marking the 61st consecutive year of dividend increases, and returned over $3.2 billion to shareholders through dividends and share repurchases.
Negative
Organic Revenue Decline: Organic growth was down 0.5% in Q4, including a 0.9% revenue reduction from strategic product line simplification, leading to total revenues down 1.3%.
OEM Revenue Decline: Automotive OEM segment organic revenue declined 2% in Q4, significantly lower than the previous year's growth of 8%, with North America down 5% and Europe down 10%.
Construction Products Market Decline: Construction products organic growth decreased by 4% in Q4, outpacing a market decline of 7%, indicating a challenging environment for new housing starts.
Specialty Products Revenue Decline: Specialty products experienced a 4% decline in organic revenue, with a planned 5% reduction from strategic product line simplification, reflecting ongoing repositioning challenges.
Currency Impact on Revenue: Foreign currency translation is expected to negatively impact revenue by 3% in 2025, alongside increased restructuring expenses projected to reduce EPS by $0.15 to $0.20.
ITW FAQs
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ITW Earning Call Sentiment
Illinois Tool Works Inc. (NYSE:ITW) Q4 2024 Earnings Call Transcript
ITW.N
-0.1%Positive
The earnings call presents a mixed picture: strong shareholder returns with increased dividends and share repurchases, but challenges like supply chain issues, competitive pressures, and uncertain market outlooks. The financial performance shows some growth in EPS and margins, yet revenue declined. The Q&A highlights cautious optimism, but management's evasive responses on restructuring impacts raise concerns. Overall, the positive elements are counterbalanced by uncertainties, leading to a neutral sentiment.
