Illinois Tool Works
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.
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 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.
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.
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.
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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