Illinois Tool Works Inc. (ITW) Expected to Post Earnings of $1.80 Per Share

Wall Street analysts forecast that Illinois Tool Works Inc. (NYSE:ITW) will report earnings per share (EPS) of $1.80 for the current fiscal quarter, Zacks Investment Research reports. Seven analysts have made estimates for Illinois Tool Works’ earnings, with the lowest EPS estimate coming in at $1.74 and the highest estimate coming in at $1.84. Illinois Tool Works posted earnings of $1.90 per share in the same quarter last year, which suggests a negative year-over-year growth rate of 5.3%. The firm is scheduled to report its next earnings results on Thursday, April 25th.

According to Zacks, analysts expect that Illinois Tool Works will report full year earnings of $7.97 per share for the current year, with EPS estimates ranging from $7.80 to $8.15. For the next fiscal year, analysts anticipate that the company will report earnings of $8.45 per share, with EPS estimates ranging from $8.20 to $8.75. Zacks’ EPS averages are an average based on a survey of research analysts that follow Illinois Tool Works.

Illinois Tool Works (NYSE:ITW) last posted its earnings results on Friday, February 1st. The industrial products company reported $1.83 earnings per share for the quarter, topping analysts’ consensus estimates of $1.82 by $0.01. The company had revenue of $3.58 billion during the quarter, compared to analyst estimates of $3.61 billion. Illinois Tool Works had a return on equity of 69.48% and a net margin of 17.35%. Illinois Tool Works’s revenue was down 1.4% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.70 earnings per share.

A number of analysts have weighed in on ITW shares. BMO Capital Markets lowered their target price on Illinois Tool Works from $145.00 to $140.00 and set a “market perform” rating for the company in a report on Monday, February 25th. Morgan Stanley lowered Illinois Tool Works from an “equal weight” rating to an “underweight” rating and lowered their target price for the stock from $131.00 to $115.00 in a report on Tuesday, December 18th. Citigroup lowered Illinois Tool Works from a “buy” rating to a “neutral” rating and set a $144.00 target price for the company. in a report on Monday, January 14th. Deutsche Bank set a $133.00 target price on Illinois Tool Works and gave the stock a “hold” rating in a report on Monday, December 10th. Finally, Credit Suisse Group restated a “hold” rating and set a $124.00 target price on shares of Illinois Tool Works in a report on Tuesday, January 22nd. Five analysts have rated the stock with a sell rating, twelve have issued a hold rating and one has issued a buy rating to the company’s stock. The company presently has an average rating of “Hold” and a consensus target price of $136.60.

In related news, insider Sundaram Nagarajan sold 18,651 shares of the company’s stock in a transaction on Monday, February 4th. The stock was sold at an average price of $137.75, for a total value of $2,569,175.25. Following the transaction, the insider now directly owns 44,954 shares of the company’s stock, valued at approximately $6,192,413.50. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, EVP Juan Valls sold 52,265 shares of the company’s stock in a transaction on Tuesday, February 19th. The shares were sold at an average price of $142.41, for a total value of $7,443,058.65. Following the completion of the transaction, the executive vice president now directly owns 78,620 shares in the company, valued at $11,196,274.20. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 128,970 shares of company stock worth $18,348,472. Insiders own 0.82% of the company’s stock.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Synovus Financial Corp grew its position in Illinois Tool Works by 20.1% during the 3rd quarter. Synovus Financial Corp now owns 4,115 shares of the industrial products company’s stock worth $579,000 after purchasing an additional 690 shares during the period. Private Advisor Group LLC boosted its stake in shares of Illinois Tool Works by 113.6% during the 3rd quarter. Private Advisor Group LLC now owns 20,733 shares of the industrial products company’s stock worth $2,926,000 after acquiring an additional 11,025 shares in the last quarter. Daiwa Securities Group Inc. boosted its stake in shares of Illinois Tool Works by 5.5% during the 3rd quarter. Daiwa Securities Group Inc. now owns 11,110 shares of the industrial products company’s stock worth $1,568,000 after acquiring an additional 576 shares in the last quarter. Cambridge Investment Research Advisors Inc. boosted its stake in shares of Illinois Tool Works by 3.9% during the 3rd quarter. Cambridge Investment Research Advisors Inc. now owns 20,331 shares of the industrial products company’s stock worth $2,869,000 after acquiring an additional 765 shares in the last quarter. Finally, First National Bank of Omaha boosted its stake in shares of Illinois Tool Works by 20.9% during the 3rd quarter. First National Bank of Omaha now owns 2,280 shares of the industrial products company’s stock worth $321,000 after acquiring an additional 394 shares in the last quarter. 77.50% of the stock is currently owned by hedge funds and other institutional investors.

Illinois Tool Works stock traded down $1.72 during mid-day trading on Friday, reaching $143.18. 4,524,433 shares of the company were exchanged, compared to its average volume of 1,536,657. The company has a quick ratio of 1.26, a current ratio of 1.63 and a debt-to-equity ratio of 1.85. The firm has a market cap of $47.54 billion, a P/E ratio of 18.84, a P/E/G ratio of 2.35 and a beta of 1.20. Illinois Tool Works has a 12-month low of $117.75 and a 12-month high of $171.83.

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 10th. Stockholders of record on Friday, March 29th will be given a dividend of $1.00 per share. This represents a $4.00 dividend on an annualized basis and a dividend yield of 2.79%. The ex-dividend date is Thursday, March 28th. Illinois Tool Works’s payout ratio is presently 52.63%.

About Illinois Tool Works

Illinois Tool Works Inc manufactures and sells industrial products and equipment worldwide. It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products. The Automotive OEM segment offers plastic and metal components, fasteners, and assemblies for automobiles, light trucks, and other industrial uses.

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