Illinois Tool Works
The 10-second takeaway
For the quarter ended March 31 (Q1), Illinois Tool Works missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share dropped. GAAP earnings per share dropped significantly.
Gross margins increased, operating margins grew, net margins dropped.
Illinois Tool Works chalked up revenue of $4.01 billion. The 15 analysts polled by S&P Capital IQ expected to see revenue of $4.28 billion on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $4.55 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 $0.96. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.96 per share. Non-GAAP EPS of $0.96 for Q1 were 1.0% lower than the prior-year quarter's $0.97 per share. (The prior-year quarter included $0.03 per share in earnings from discontinued operations.) GAAP EPS of $0.78 for Q1 were 22% lower than the prior-year quarter's $1.00 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 37.6%, 160 basis points better than the prior-year quarter. Operating margin was 16.5%, 100 basis points better than the prior-year quarter. Net margin was 8.8%, 190 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $4.50 billion. On the bottom line, the average EPS estimate is $1.12.
Next year's average estimate for revenue is $17.45 billion. The average EPS estimate is $4.26.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 762 members out of 789 rating the stock outperform, and 27 members rating it underperform. Among 244 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 240 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 $68.00.
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