Wall Street analysts expect Illinois Tool Works (ITW) to post quarterly earnings of $2.68 per share in its upcoming report, which indicates a year-over-year increase of 5.5%. Revenues are expected to be $4.07 billion, up 3.6% from the year-ago quarter.
The consensus EPS estimate for the quarter has been revised 0.1% lower 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 announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance 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 consensus among analysts is that 'Operating Revenues- Test & Measurement and Electronics' will reach $764.40 million. The estimate indicates a change of +2.3% from the prior-year quarter.
Analysts predict that the 'Operating Revenues- Construction Products' will reach $442.31 million. The estimate suggests a change of +1% year over year.
The consensus estimate for 'Operating Revenues- Food Equipment' stands at $694.91 million. The estimate points to a change of +3.4% from the year-ago quarter.
The average prediction of analysts places 'Operating Revenues- Specialty Products' at $433.03 million. The estimate indicates a year-over-year change of +4.1%.
Analysts expect 'Operating Revenues- Automotive OEM' to come in at $829.04 million. The estimate points to a change of +5.6% from the year-ago quarter.
It is projected by analysts that the 'Operating Revenues- Welding' will reach $466.64 million. The estimate indicates a year-over-year change of +4.4%.
Based on the collective assessment of analysts, 'Operating Revenues- Polymers & Fluids' should arrive at $434.95 million. The estimate indicates a year-over-year change of +1.2%.
According to the collective judgment of analysts, 'Operating Revenue - Test & Measurement and Electronics - Organic growth' should come in at 1.3%. The estimate is in contrast to the year-ago figure of 4.6%.
The collective assessment of analysts points to an estimated 'Operating Income- Automotive OEM' of $175.14 million. Compared to the current estimate, the company reported $156.00 million in the same quarter of the previous year.
Analysts' assessment points toward 'Operating Income- Food Equipment' reaching $193.69 million. The estimate is in contrast to the year-ago figure of $182.00 million.
The combined assessment of analysts suggests that 'Operating Income- Test & Measurement and Electronics' will likely reach $200.19 million. Compared to the current estimate, the company reported $202.00 million in the same quarter of the previous year.
Analysts forecast 'Operating Income- Specialty Products' to reach $129.72 million. Compared to the current estimate, the company reported $118.00 million in the same quarter of the previous year.
View all Key Company Metrics for Illinois Tool Works here>>>
Shares of Illinois Tool Works have demonstrated returns of +4.9% over the past month compared to the Zacks S&P 500 composite's +0.8% change. With a Zacks Rank #3 (Hold), ITW is expected to mirror the overall market performance in the near future. 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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