What To Expect From Illinois Tool Works's (ITW) Q3 Earnings

Manufacturing company Illinois Tool Works (NYSE:ITW) will be reporting results this Friday before the bell. Here’s what to look for.

Illinois Tool Works beat analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $4.05 billion, flat year on year. It was a strong quarter for the company, with full-year EPS guidance beating analysts’ expectations and a narrow beat of analysts’ revenue estimates.

Is Illinois Tool Works a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Illinois Tool Works’s revenue to grow 3.2% year on year to $4.09 billion, a reversal from the 1.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.72 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Illinois Tool Works has missed Wall Street’s revenue estimates six times over the last two years.

Looking at Illinois Tool Works’s peers in the industrial machinery segment, some have already reported their Q3 results, giving us a hint as to what we can expect. GE Aerospace delivered year-on-year revenue growth of 36.2%, beating analysts’ expectations by 11.7%, and 3M reported revenues up 3.5%, topping estimates by 4.2%. GE Aerospace traded down 1.6% following the results while 3M was up 8%.

Read our full analysis of GE Aerospace’s results here and 3M’s results here.

Investors in the industrial machinery segment have had steady hands going into earnings, with share prices flat over the last month. Illinois Tool Works is down 2.1% during the same time and is heading into earnings with an average analyst price target of $261 (compared to the current share price of $255.61).

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