- Earnings Per Share (EPS): EPS for Q2 came out at $2.54, beating the estimate of $2.49 and higher than the previous year’s $2.48.
- Operating Revenue: The company reported $4.03 billion in operating revenue, slightly below the $4.1 billion estimate and down 1.2% year-over-year.
- Automotive Revenue: Revenue came in at $815 million, a 1.3% decline year-over-year and below the $846.3 million estimate.
- Food Equipment Revenue: Revenue was $667 million, up 2% year-over-year but just shy of the $669.4 million estimate.
- Test & Measurement and Electronics Revenue: Reported revenue was $678 million, down 3.1% year-over-year and below the $712.6 million estimate.
- Welding Revenue: Declined by 4.9% year-over-year to $466 million, missing the $484 million estimate.
- Polymers & Fluids Revenue: Revenue came in at $454 million, down 1.1% year-over-year and under the $463.7 million estimate.
- Construction Products Revenue: Reported at $504 million, a decrease of 4.2% year-over-year and below the $511.6 million estimate.
- Specialty Products Revenue: Increased by 6.1% year-over-year to $449 million, surpassing the $415.4 million estimate.
- Organic Revenue: Nearly flat at -0.1%, compared to a +3% increase the previous year and an estimate of +0.78%.
- Automotive Organic Revenue: Slight increase of 0.4%, much lower than the previous year’s 16.3% and also below the estimate of +2.77%.
- Food Equipment Organic Revenue: Grew by 2.5%, compared to the previous year’s 6.9% and meeting the estimate of +2.57%.
- Test & Measurement and Electronics Organic Revenue: Decreased by 3.1%, down from the previous year’s 1.1% increase, and missing the estimate of +1.57%.
- Welding Organic Revenue: Declined by 4.7%, compared to a 0.7% increase the previous year, but better than the estimate of -0.94%.
- Polymers & Fluids Organic Revenue: Increased by 2.6%, better than last year’s -0.5% and the estimate of +1.94%.
- Construction Products Organic Revenue: Dropped by 3.8%, an improvement over last year’s -5.7% and slightly worse than the estimate of -3.02%.
- Specialty Products Organic Revenue: Grew by 6.7%, a significant improvement over last year’s -3.6%, and far exceeding the estimate of -2.16%.
- EPS Guidance Update: The company has revised its full-year GAAP EPS guidance to a range of $10.30 to $10.40 per share, previously $10.30 to $10.70.
- Revenue and Organic Growth Projection: Revenue growth and organic growth are projected to be flat for 2024 based on current demand and foreign exchange rates.
- Company Outlook: Despite lowering the top-end EPS guidance, the company expects better margin performance to partially offset current demand levels.
- Analyst Recommendations: The stock has 4 buys, 11 holds, and 7 sells.
Illinois Tool Works on Smartkarma
Analyst coverage on Illinois Tool Works on Smartkarma reveals insights from Baptista Research. In the report titled “Illinois Tool Works Inc.: Has Its Performance In China Truly Improved? – Major Drivers,” the globally diversified manufacturing company showed a mixed start to its first quarter 2024 results. Despite facing challenging demand environment across most segments, organic growth only declined by 0.6%, with five out of seven segments following a similar trend. Despite these difficulties, Illinois Tool Works remains optimistic about the fiscal year ahead.
Another report by Baptista Research, “Illinois Tool Works: A Diversified,” focuses on the generators and machine producer. Illinois Tool Works Inc. witnessed modest growth amidst unique operational challenges in the fourth quarter of 2023, including reduced demand for capital expenditure (CapEx), lean customer inventories, and a strike in the automotive industry. Despite these hurdles, the company has managed to navigate the landscape and continue its growth trajectory.
A look at Illinois Tool Works Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Illinois Tool Works Inc., a global company that designs and manufactures a wide range of products including fasteners, industrial fluids, welding products, and specialized equipment, has a promising long-term outlook based on the Smartkarma Smart Scores. With a solid score for growth and momentum, the company is positioned for continued expansion and market performance. Additionally, its moderate scores for dividend and resilience indicate a stable financial outlook and the ability to weather market fluctuations.
Despite having a lower score for value, Illinois Tool Works Inc. remains a strong player in the industry with its innovative products and global presence. Investors looking at the long-term potential of the company can find confidence in its overall positive outlook as indicated by the Smartkarma Smart Scores. With a diversified product portfolio and a focus on quality, Illinois Tool Works is well-positioned to capitalize on future opportunities and maintain its competitive edge in the market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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