- Illinois Tool’s operating revenue for 4Q was $3.93 billion, missing the $4 billion estimate and down 1.3% year-over-year.
- Automotive revenue was $785 million, decreasing by 3.6% year-over-year and falling short of the $799.6 million estimate.
- Food equipment revenue increased by 2.6% to $672 million, nearly meeting the $672.8 million estimate.
- Test & Measurement and Electronics revenue rose by 2.2% to $747 million, surpassing the $734.9 million estimate.
- Welding revenue decreased by 0.9% to $447 million, below the $455.8 million estimate.
- Polymers & Fluids revenue fell 2.3% to $430 million, missing the $445.1 million estimate.
- Construction products revenue declined by 4.6% to $438 million, underperforming the $444 million estimate.
- Specialty products revenue dropped by 4.8% to $416 million, lower than the $451.7 million estimate.
- Earnings per share (EPS) rose to $2.54, up from $2.38 year-over-year.
- The overall organic revenue contracted by 0.5%, matching last year’s performance but below the estimated growth of 0.87%.
- Automotive organic revenue fell by 2.3%, considerably lower than last year’s 7.7% growth and the estimated decline of 1.81%.
- Food Equipment organic revenue grew by 3.4%, surpassing the previous year’s 2.7% increase and slightly above the 3.21% estimate.
- Test & Measurement and Electronics organic revenue improved by 1.7%, recovering from a 1.4% decline the previous year and better than the estimate of -0.42%.
- Welding organic revenue slightly decreased by 0.4%, far better than last year’s 6.8% drop but below the growth estimate of 1.31%.
- Polymers & Fluids organic revenue increased by 0.8%, rebounding from a 1.6% decline the prior year, but below the 1.84% growth estimate.
- Construction Products organic revenue diminished by 4.5%, more than last year’s 3.5% decrease and the expected 3.94% decline.
- Specialty Products organic revenue was down 3.6%, an improvement from a 5.4% decrease the previous year, yet short of the estimated 3% growth.
- The company forecasts a GAAP EPS range of $10.15 to $10.55 for 2025, taking into account a $0.30 foreign currency translation headwind.
- Illinois Tool aims to achieve above-market organic growth in 2025 through enhanced Customer-Back Innovation.
- Analyst ratings: 4 buys, 12 holds, and 5 sells.
Illinois Tool Works on Smartkarma
Analysts at Baptista Research have been closely covering Illinois Tool Works Inc. (ITW) on Smartkarma, shedding light on key insights and challenges facing the company. In their report titled “Illinois Tool Works Inc.: The Story Of Automotive Sector Growth & Electric Vehicles Penetration! – Major Drivers,” ITW’s Third Quarter 2024 earnings were analyzed. Despite facing challenges, such as a 1% dip in organic revenue mainly in automotive and construction markets, ITW showcased resilience with strong operational management, resulting in an operating income of $1.05 billion and a solid operating margin of 26.5%.
In another report by Baptista Research titled “Illinois Tool Works Inc.: These Are The 4 Biggest Challenges In Its Path! – Major Drivers,” the analysts delved into the financial results of ITW for the second quarter of 2024. The report highlighted challenges and efficiencies within the company’s operations, noting a slight underperformance in revenues due to moderation in short-cycle demand across their product portfolio. Despite facing a $50 million revenue shortfall compared to projections, ITW’s performance indicates a nuanced picture of the company’s operational dynamics.
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 known for designing and manufacturing a diverse range of industrial products, has received mixed Smart Scores across key factors. With above-average scores in Growth and Dividend, the company seems poised for expansion and offers a decent dividend yield to investors. However, its Value and Resilience scores are moderate, suggesting some room for improvement in terms of undervaluation and resilience to economic downturns. Momentum scores moderately as well, indicating a stable but not necessarily rapidly growing stock performance. Overall, Illinois Tool Works appears to have potential for growth and income generation, but investors might want to assess its valuation and resilience in the long term.
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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