Illinois Tool Works (NYSE: ITW) reported earnings on July 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Illinois Tool Works missed estimates on revenues and met expectations on earnings per share.

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

Margins improved across the board.

Revenue details
Illinois Tool Works reported revenue of $4.66 billion. The 11 analysts polled by S&P Capital IQ foresaw a top line of $4.85 billion on the same basis. GAAP reported sales were 0.9% higher than the prior-year quarter's $4.61 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.11. The 17 earnings estimates compiled by S&P Capital IQ averaged $1.10 per share. GAAP EPS of $1.85 for Q2 were 87% higher than the prior-year quarter's $0.99 per share. (The prior-year quarter included $0.03 per share in earnings from discontinued operations.)

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 36.3%, 120 basis points better than the prior-year quarter. Operating margin was 16.5%, 110 basis points better than the prior-year quarter. Net margin was 18.9%, 810 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $4.76 billion. On the bottom line, the average EPS estimate is $1.09.

Next year's average estimate for revenue is $18.65 billion. The average EPS estimate is $4.18.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 760 members out of 785 rating the stock outperform, and 25 members rating it underperform. Among 233 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 228 give Illinois Tool Works a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Illinois Tool Works is hold, with an average price target of $61.13.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Illinois Tool Works. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.