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 -0.44% 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 -0.54%. This data can give you a slight idea of what to expect for the next quarter's release.
ITW Key Earning Data
ITW Earnings Analysis
Positive
Earnings Per Share Beat: ITW reported a GAAP EPS of $2.38, exceeding expectations of $2.34, indicating strong financial performance.
Flat Organic Growth Performance: The company achieved flat organic growth on an equal days’ basis, outperforming underlying end markets in a steady demand environment.
Improved Operating Margins: Operating margins improved to 24.8%, with enterprise initiatives contributing 120 basis points, showcasing effective cost management and operational efficiency.
Strong Free Cash Flow: Free cash flow was robust at $496 million, with a conversion rate of 71%, reflecting strong cash generation capabilities.
Automotive OEM Segment Growth: The Automotive OEM segment is expected to outperform industry build data by 200 to 300 basis points, driven by growth in content per vehicle and strong performance in the EV market.
Organic Revenue Growth: China's organic revenue grew 12%, indicating strong market demand and successful innovation in the automotive sector.
EPS Guidance Confidence: The company maintained its full-year EPS guidance of $10.15 to $10.55, demonstrating confidence in its financial outlook despite market uncertainties.
Strategic Tariff Mitigation: ITW's 90% 'produce where we sell' strategy mitigates tariff impacts, positioning the company favorably against competitors.
Negative
Decline in Organic Growth: Organic growth was down 1.6% as expected, indicating a decline in revenue performance.
Revenue Decline Analysis: Total revenue was down 3.4%, reflecting challenges in the market.
Product Management Challenges: Product line simplification reduced revenue by 50 basis points in the quarter, suggesting difficulties in product management.
Operating Margin Decline: Operating margin declined year-over-year primarily due to the non-repeat of a 300 basis points LIFO inventory accounting benefit from the previous year.
Regional Revenue Decline: Organic revenue declined about 3% in both North America and Europe, highlighting regional weaknesses.
Automotive OEM Revenue Decline: The Automotive OEM segment saw a 1% decline in organic revenue, with North America down 6%, indicating struggles in that market.
Revenue Decline Analysis: The Test & Measurement and Electronics segment experienced a 5% decline in organic revenue, primarily due to tough comparisons from the previous year.
Welding Market Stagnation: Organic growth in Welding was essentially flat, with no significant improvement in the North American market.
Construction Products Decline: Organic growth in Construction Products was down 7%, reflecting tough end-markets and declining housing starts.
Specialty Products Revenue Slowdown: The Specialty Products segment's organic revenue growth was only 1%, down from 6% in the previous year, indicating a slowdown in growth momentum.
ITW FAQs
How does ITW typically perform around its earnings report dates?
ITW's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a -0.44% change leading up to the report and a -0.10% change in the 10 days following the release.
Is Illinois Tool Works Inc (ITW) Q1 2025 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
ITW Earning Call Sentiment
Illinois Tool Works Inc. (NYSE:ITW) Q1 2025 Earnings Call Transcript
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