Core Insights - Illinois Tool Works (ITW) reported quarterly earnings of $2.54 per share, exceeding the Zacks Consensus Estimate of $2.45 per share, and up from $2.41 per share a year ago [1][2] - The company posted revenues of $4.03 billion for the quarter, missing the Zacks Consensus Estimate by 1.38% and down from $4.07 billion year-over-year [3] - The stock has underperformed the market, losing about 5.3% since the beginning of the year compared to the S&P 500's gain of 14.5% [4] Earnings Performance - The earnings surprise for the quarter was 3.67%, with the company having surpassed consensus EPS estimates in all of the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is $2.58, with expected revenues of $4.13 billion, and for the current fiscal year, the consensus EPS is $10.14 on revenues of $16.31 billion [8] Market Outlook - The estimate revisions trend for Illinois Tool Works is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [7] - The Manufacturing - General Industrial industry, to which ITW belongs, is ranked in the bottom 41% of over 250 Zacks industries, suggesting potential challenges ahead [9] Competitor Insights - Markforged Holding Corporation (MKFG), another company in the same industry, is expected to report a quarterly loss of $0.06 per share, with revenues projected at $21.76 million, down 14.5% year-over-year [10]

• Revenue of $4.0 billion, a decrease of 1% with flat organic growth • Operating income of $1.05 billion, an increase of 4.5% • Operating margin of 26.2%, an increase of 140 bps as enterprise initiatives contributed 140 bps • GAAP EPS of $2.54, an increase of 2%; Excl. a one-time 2023 tax item, EPS increased 5% • Narrowing full year GAAP EPS guidance to a range of $10.30 to $10.40 per share Second quarter revenue of $4.0 billion declined by 1.2 percent as organic growth declined 0.1 percent. Foreign currenc ...

Revenue of $4.0 billion, a decrease of 1% with flat organic growth Operating income of $1.05 billion, an increase of 4.5% Operating margin of 26.2%, an increase of 140 bps as enterprise initiatives contributed 140 bps GAAP EPS of $2.54, an increase of 2%; Excl. a one-time 2023 tax item, EPS increased 5% Narrowing full year GAAP EPS guidance to a range of $10.30 to $10.40 per share GLENVIEW, Ill., July 30, 2024 (GLOBE NEWSWIRE) -- Illinois Tool Works Inc. (NYSE: ITW) today reported its second quarter 2024 re ...

Core Insights - The company reported a solid quarter with operational execution and profitability despite a moderating demand environment, achieving a record operating margin of 26.2% and EPS growth of over 5% [1][46] - Second quarter revenue was $4.0 billion, a decline of 1.2%, with organic growth decreasing by 0.1% [1][46] - The company is narrowing its full-year GAAP EPS guidance to a range of $10.30 to $10.40 per share, reflecting a 6% increase compared to the prior year at the midpoint [11][46] Financial Performance - Operating income for the second quarter was $1.05 billion, an increase of 4.5% year-over-year [18][46] - The operating margin improved by 140 basis points to 26.2%, attributed to enterprise initiatives [18][46] - GAAP EPS increased by 2.4% to $2.54, and excluding a one-time tax item from 2023, EPS increased by 5.4% [18][46] Revenue Breakdown - The second quarter revenue of $4.0 billion was impacted by a 1.2% decline in foreign currency translation and a 0.1% contribution from acquisitions [1][46] - Segment performance varied, with notable declines in Welding (4.7%) and Construction Products (3.8%), while Food Equipment showed growth of 2.5% [7][46] Cash Flow and Share Repurchase - Operating cash flow was reported at $687 million, with free cash flow at $571 million, representing a conversion rate of 75% to net income [18][46] - The company plans to repurchase approximately $1.5 billion of its own shares [11][46] Guidance and Future Outlook - The company anticipates flat revenue growth and organic growth for 2024, while raising its operating margin guidance to a range of 26.5% to 27% [11][46] - The effective tax rate is projected to remain unchanged in the range of 24% to 24.5% [11][46]

Zacks Consensus Estimate Revenues are expected to be $4.09 billion, up 0.4% from the year-ago quarter. Earnings Whisper A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. How Have the Numbers Shaped Up for Illinois Tool Works? O ...

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In the past month, the Zacks Rank #3 (Hold) company has lost 4.6% compared with the industry's 6.7% decline. However, softness in the consumer electronics and semiconductor end markets is affecting revenues at Illinois Tool's Test & Measurement and Electronics segment (revenues down 0.9% year over year in the first quarter). Also, lower demand in North America and Asia Pacific is affecting the segment's electronics assembly businesses. ITW's focus on cost management and enterprise initiatives has been suppo ...

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