Illinois Tool Works
The 10-second takeaway
For the quarter ended March 31 (Q1), Illinois Tool Works met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.
Gross margins expanded, operating margins improved, net margins shrank.
Illinois Tool Works reported revenue of $4.55 billion. The 15 analysts polled by S&P Capital IQ anticipated a top line of $4.60 billion on the same basis. GAAP reported sales were 6.4% higher than the prior-year quarter's $4.27 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.97. The 20 earnings estimates compiled by S&P Capital IQ forecast $0.95 per share on the same basis. GAAP EPS of $1.00 for Q1 were 19% lower than the prior-year quarter's $1.24 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 36.0%, 70 basis points better than the prior-year quarter. Operating margin was 15.5%, 10 basis points better than the prior-year quarter. Net margin was 10.7%, 390 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $4.92 billion. On the bottom line, the average EPS estimate is $1.07.
Next year's average estimate for revenue is $19.04 billion. The average EPS estimate is $4.14.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 760 members out of 786 rating the stock outperform, and 26 members rating it underperform. Among 241 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 237 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 $58.06.
Can your retirement portfolio provide you with enough income to last? You'll need more than Illinois Tool Works. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.
- Add Illinois Tool Works to My Watchlist.