Illinois Tool Works (NYSE: ITW) reported earnings on Jan. 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Illinois Tool Works met expectations on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue improved, and GAAP earnings per share expanded significantly.

Margins improved across the board.

Revenue details
Illinois Tool Works chalked up revenue of $4.32 billion. The 15 analysts polled by S&P Capital IQ hoped for sales of $4.37 billion. Sales were 3.6% higher than the prior-year quarter's $4.17 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.90. The 19 earnings estimates compiled by S&P Capital IQ forecast $0.88 per share on the same basis. GAAP EPS of $0.91 for Q4 were 17% higher than the prior-year quarter's $0.78 per share.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 35.2%, 90 basis points better than the prior-year quarter. Operating margin was 15.0%, 110 basis points better than the prior-year quarter. Net margin was 10.2%, 80 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $4.56 billion. On the bottom line, the average EPS estimate is $0.98.

Next year's average estimate for revenue is $18.99 billion. The average EPS estimate is $4.13.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 776 members out of 798 rating the stock outperform, and 22 members rating it underperform. Among 265 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 261 give Illinois Tool Works a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Illinois Tool Works is outperform, with an average price target of $53.50.

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