Yahoo Finance Illinois Tool (ITW) to Report Q1 Earnings: What to Expect?
Illinois Tool Works Inc. ITW is scheduled to release first-quarter 2024 results on Apr 30, before market open.
The Zacks Consensus Estimate for first-quarter earnings increased by a penny in the past 60 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters. The average beat was 3.3%.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $4,019 million, relatively stable compared with the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings is pinned at $2.35 per share, indicating 0.9% growth from the year-ago quarter’s reported number.
Let’s see how things have shaped up for Illinois Tool this earnings season.
Illinois Tool Works Inc. Price and EPS Surprise
Illinois Tool Works Inc. price-eps-surprise | Illinois Tool Works Inc. Quote
Factors to Note
Strong market share and penetration gains in the rapidly growing electric vehicle markets are likely to have boosted the performance of Illinois Tool’s Automotive Original Equipment Manufacturer (OEM) segment. We expect the Automotive OEM segment’s revenues to be $813.3 million, suggesting a 2.2% increase from the year-ago reported number.
Growth in the institutional, retail and service end markets is likely to have supported the Food Equipment segment in the first quarter. We expect the segment’s revenues to increase 2.5% from the year-ago reported number to $650.7 million.
Solid momentum of the welding business driven by strong demand for its products is likely to have been a tailwind. We expect the Welding segment’s revenues to increase 1% to $497.7 million from the year-ago reported figure.
However, declines in the consumer packaging, specialty films and strength films businesses are likely to have weighed on ITW’s Specialty Products segment in the to-be-reported quarter. Due to this adversity, we expect the segment’s revenues to decrease 5% year over year to $401.7 million.
Also, the Construction Products segment is expected to put up a weak show in the first quarter due to softness in the housing market. We expect revenues from the segment to decrease 3.9% year over year to $505.4 million in the to-be-reported quarter.
Weakness in the company’s semiconductor-related business in North America is also expected to have hurt the performance of the Test & Measurement and Electronics segment.
Nevertheless, ITW’s cost management actions and enterprise initiatives are likely to have supported its margins and profitability in the first quarter.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for ITW this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.
Earnings ESP: ITW has an Earnings ESP of -0.64% as the Most Accurate Estimate is pegged at $2.33, which is lower than the Zacks Consensus Estimate of $2.35. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: ITW presently carries a Zacks Rank of 3.
Stocks With Favorable Combination
Here are three companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the upcoming release.
Atmus Filtration Technologies Inc. ATMU has an Earnings ESP of +0.57% and sports a Zacks Rank #1. It is slated to release first-quarter results on May 3. ATMU delivered a trailing four-quarter earnings surprise of 20.3%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ingersoll Rand IR has an Earnings ESP of +1.82% and a Zacks Rank of 2. It is slated to release upcoming results on May 2. IR delivered a trailing four-quarter earnings surprise of 15.6%, on average.
Parker-Hannifin Corporation PH has an Earnings ESP of +1.35% and a Zacks Rank #3. It is slated to release third-quarter fiscal 2024 results on May 2. PH delivered a trailing four-quarter earnings surprise of 14.4%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report
Parker-Hannifin Corporation (PH) : Free Stock Analysis Report
Ingersoll Rand Inc. (IR) : Free Stock Analysis Report
Atmus Filtration Technologies Inc. (ATMU) : Free Stock Analysis Report
