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Glenview, Illinois-based Illinois Tool Works Inc. (ITW) manufactures and sells industrial products and equipment. Valued at $78.1 billion by market cap, the company provides industrial fluids and adhesives, tooling for specialty applications, welding products, and quality measurement equipment and systems. The industrial products and equipment behemoth is expected to announce its fiscal third-quarter earnings for 2024 before the market opens on Tuesday, Oct. 22.
Ahead of the event, analysts expect ITW to report a profit of $2.54 per share on a diluted basis, marginally down from $2.55 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. Despite cooling demand, its EPS of $2.54 in the previous quarter exceeded the consensus estimate by 3.7%.
For the full year, analysts expect ITW to report EPS of $10.18, up 4.1% from $9.78 in fiscal 2023.
ITW stock has underperformed the S&P 500’s ($SPX) 34.8% gains over the past 52 weeks, with shares up 12.8% during this period. It has also lagged behind the Industrial Select Sector SPDR Fund’s (XLI) 35% gains over the same time frame.
Slowing growth and macroeconomic challenges, along with the negative effects of foreign currency translation, have weighed on ITW's overall performance over the past year.
On Jul. 30, ITW shares rose marginally after reporting its Q2 earnings results. ITW reduced the upper range of its full-year EPS guidance to between $10.30 and $10.40. Additionally, the company anticipates both total and organic revenues to remain flat this year.
Analysts’ consensus opinion on ITW stock is neutral, with a “Hold” rating overall. Out of 17 analysts covering the stock, three advise a “Strong Buy” rating, nine give a “Hold” rating, one suggests a “Moderate Sell” rating, and the remaining four recommend a “Strong Sell.”
While ITW currently trades above its mean price target of $247.43, the Street-high price target of $281 represents a potential upswing of 8.1% from the prevailing price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
