Illinois Tool Works (NYSE: ITW) reported earnings on Jan. 29. Here are the numbers you need to know.

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

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

Gross margins increased, operating margins dropped, net margins grew.

Revenue details
 Illinois Tool Works recorded revenue of $4.22 billion. The 14 analysts polled by S&P Capital IQ foresaw net sales of $4.15 billion on the same basis. GAAP reported sales were 2.3% lower than the prior-year quarter's $4.32 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 $0.89. The 19 earnings estimates compiled by S&P Capital IQ predicted $0.90 per share. GAAP EPS of $2.12 for Q4 were 133% higher than the prior-year quarter's $0.91 per share. (The prior-year quarter included $0.01 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 35.4%, 20 basis points better than the prior-year quarter. Operating margin was 14.4%, 60 basis points worse than the prior-year quarter. Net margin was 23.2%, 1,300 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $4.36 billion. On the bottom line, the average EPS estimate is $1.02.

Next year's average estimate for revenue is $17.60 billion. The average EPS estimate is $4.39.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 755 members out of 781 rating the stock outperform, and 26 members rating it underperform. Among 256 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 250 give Illinois Tool Works a green thumbs-up, and six 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 $65.71.

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