Manufacturing company Illinois Tool Works (NYSE: ITW) will be reporting earnings tomorrow before market hours. Here’s what to expect.
Illinois Tool Works missed analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $3.93 billion, down 1.3% year on year. It was a slower quarter for the company, with full-year EPS guidance missing analysts’ expectations and a slight miss of analysts’ organic revenue estimates.
Is Illinois Tool Works a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Illinois Tool Works’s revenue to decline 3.4% year on year to $3.84 billion, a further deceleration from the 1.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.35 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.
Looking at Illinois Tool Works’s peers in the general industrial machinery segment, some have already reported their Q1 results, giving us a hint as to what we can expect. GE Aerospace delivered year-on-year revenue growth of 23%, beating analysts’ expectations by 1.7%, and 3M reported a revenue decline of 3.9%, topping estimates by 1.5%. GE Aerospace traded up 8.6% following the results while 3M was also up 8%.
Read our full analysis of GE Aerospace’s results here and 3M’s results here.
Investors in the general industrial machinery segment have had fairly steady hands going into earnings, with share prices down 1.3% on average over the last month. Illinois Tool Works is down 3.2% during the same time and is heading into earnings with an average analyst price target of $249.07 (compared to the current share price of $240.05).
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