Earnings Outlook For Illinois Tool Works

Illinois Tool Works (NYSE:ITW) is set to give its latest quarterly earnings report on Wednesday, 2025-04-30. Here's what investors need to know before the announcement.

Analysts estimate that Illinois Tool Works will report an earnings per share (EPS) of $2.35.

The market awaits Illinois Tool Works's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Performance in Previous Earnings

Last quarter the company beat EPS by $0.05, which was followed by a 0.33% increase in the share price the next day.

Here's a look at Illinois Tool Works's past performance and the resulting price change:

Quarter	Q4 2024	Q3 2024	Q2 2024	Q1 2024
EPS Estimate	2.49	2.53	2.49	2.36
EPS Actual	2.54	2.65	2.54	2.44
Price Change %	0.0%	-1.0%	-1.0%	-1.0%

Tracking Illinois Tool Works's Stock Performance

Shares of Illinois Tool Works were trading at $240.12 as of April 28. Over the last 52-week period, shares are down 0.48%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analyst Observations about Illinois Tool Works

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Illinois Tool Works.

The consensus rating for Illinois Tool Works is Neutral, based on 11 analyst ratings. With an average one-year price target of $252.64, there's a potential 5.21% upside.

Peer Ratings Comparison

The following analysis focuses on the analyst ratings and average 1-year price targets of Parker Hannifin, Ingersoll Rand and Xylem, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for Parker Hannifin, with an average 1-year price target of $735.15, suggesting a potential 206.16% upside.
• Analysts currently favor an Outperform trajectory for Ingersoll Rand, with an average 1-year price target of $93.0, suggesting a potential 61.27% downside.
• Analysts currently favor an Buy trajectory for Xylem, with an average 1-year price target of $140.67, suggesting a potential 41.42% downside.

Insights: Peer Analysis

In the peer analysis summary, key metrics for Parker Hannifin, Ingersoll Rand and Xylem are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Company	Consensus	Revenue Growth	Gross Profit	Return on Equity
Illinois Tool Works	Neutral	-1.28%	$1.71B	22.36%
Parker Hannifin	Outperform	-1.63%	$1.72B	7.29%
Ingersoll Rand	Outperform	4.24%	$815.40M	2.25%
Xylem	Buy	6.52%	$857M	3.07%

Key Takeaway:

Illinois Tool Works ranks at the top for Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth.

All You Need to Know About Illinois Tool Works

Founded in 1912, Illinois Tool Works has become a diversified industrial manufacturer through acquisitions and innovations that follow customer needs. ITW operates through seven business segments, with no segment representing more than one fifth of revenue. ITW's automotive OEM segment sells vehicle components; its food equipment segment sells commercial kitchen appliances; its test & measurement and electronics segment sells inspection and analysis equipment; its welding segment sells welding equipment and consumables; its polymers & fluids segment sells industrial and consumer adhesives, solvents, and coatings; its construction products segment sells building fasteners and tools; and its specialty products segment sells medical, packaging, HVAC, and airport ground equipment.

Illinois Tool Works: Financial Performance Dissected

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Negative Revenue Trend: Examining Illinois Tool Works's financials over 3 months reveals challenges. As of 31 December, 2024, the company experienced a decline of approximately -1.28% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Net Margin: Illinois Tool Works's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 19.07% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Illinois Tool Works's ROE stands out, surpassing industry averages. With an impressive ROE of 22.36%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Illinois Tool Works's ROA stands out, surpassing industry averages. With an impressive ROA of 4.86%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Illinois Tool Works's debt-to-equity ratio stands notably higher than the industry average, reaching 2.44. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

To track all earnings releases for Illinois Tool Works visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.