In its upcoming report, Illinois Tool Works (ITW) is predicted by Wall Street analysts to post quarterly earnings of $2.56 per share, reflecting an increase of 0.8% compared to the same period last year. Revenues are forecasted to be $4.01 billion, representing a year-over-year decrease of 0.4%.
The consensus EPS estimate for the quarter has been revised 0.6% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
Bearing this in mind, let's now explore the average estimates of specific Illinois Tool Works metrics that are commonly monitored and projected by Wall Street analysts.
The collective assessment of analysts points to an estimated 'Operating Revenues- Test & Measurement and Electronics' of $672.53 million. The estimate indicates a change of -0.8% from the prior-year quarter.
The consensus among analysts is that 'Operating Revenues- Construction Products' will reach $492.87 million. The estimate points to a change of -2.2% from the year-ago quarter.
The combined assessment of analysts suggests that 'Operating Revenues- Food Equipment' will likely reach $666.24 million. The estimate indicates a year-over-year change of -0.1%.
The consensus estimate for 'Operating Revenues- Specialty Products' stands at $445.56 million. The estimate suggests a change of -0.8% year over year.
According to the collective judgment of analysts, 'Operating Revenues- Automotive OEM' should come in at $790.60 million. The estimate indicates a year-over-year change of -3%.
Analysts predict that the 'Operating Revenues- Welding' will reach $467.18 million. The estimate suggests a change of +0.3% year over year.
Analysts' assessment points toward 'Operating Revenues- Polymers & Fluids' reaching $447.66 million. The estimate indicates a change of -1.4% from the prior-year quarter.
It is projected by analysts that the 'Operating Revenue - Specialty Products - Organic growth' will reach -0.4%. The estimate is in contrast to the year-ago figure of 6.2%.
Analysts forecast 'Operating Income- Automotive OEM' to reach $157.86 million. Compared to the current estimate, the company reported $157.00 million in the same quarter of the previous year.
Analysts expect 'Operating Income- Food Equipment' to come in at $182.17 million. The estimate is in contrast to the year-ago figure of $180.00 million.
Based on the collective assessment of analysts, 'Operating Income- Test & Measurement and Electronics' should arrive at $163.47 million. The estimate compares to the year-ago value of $159.00 million.
The average prediction of analysts places 'Operating Income- Specialty Products' at $141.02 million. The estimate is in contrast to the year-ago figure of $144.00 million.
View all Key Company Metrics for Illinois Tool Works here>>>
Over the past month, Illinois Tool Works shares have recorded returns of +6.1% versus the Zacks S&P 500 composite's +4.6% change. Based on its Zacks Rank #3 (Hold), ITW will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Illinois Tool Works Inc. (ITW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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