Zacks Research Issues Pessimistic Forecast for ITW Earnings

Illinois Tool Works Inc. (NYSE:ITW) – Investment analysts at Zacks Research lowered their FY2027 earnings estimates for Illinois Tool Works in a research note issued on Wednesday, January 14th. Zacks Research analyst Team now anticipates that the industrial products company will post earnings of $12.04 per share for the year, down from their previous estimate of $12.06. The consensus estimate for Illinois Tool Works’ current full-year earnings is $10.39 per share.

Illinois Tool Works (NYSE:ITW) last posted its quarterly earnings data on Friday, October 24th. The industrial products company reported $2.81 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.72 by $0.09. The company had revenue of $4.06 billion during the quarter, compared to analyst estimates of $4.09 billion. Illinois Tool Works had a return on equity of 93.26% and a net margin of 19.05%.The firm’s quarterly revenue was up 2.3% on a year-over-year basis. During the same quarter last year, the company earned $3.91 earnings per share. Illinois Tool Works has set its FY 2025 guidance at 10.400-10.500 EPS.

A number of other equities analysts have also commented on ITW. Wolfe Research increased their price target on shares of Illinois Tool Works from $264.00 to $278.00 and gave the stock an “underperform” rating in a report on Thursday. Evercore ISI lowered their price target on Illinois Tool Works from $261.00 to $253.00 and set an “underperform” rating on the stock in a research report on Monday, November 17th. Robert W. Baird set a $265.00 price objective on Illinois Tool Works in a report on Monday, October 27th. Barclays raised their price objective on Illinois Tool Works from $243.00 to $244.00 and gave the company an “underweight” rating in a report on Monday, October 27th. Finally, Wells Fargo & Company upped their target price on Illinois Tool Works from $245.00 to $250.00 and gave the stock an “underweight” rating in a research note on Wednesday, January 7th. Two equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and five have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Reduce” and a consensus target price of $261.08.

Illinois Tool Works Stock Up 0.6%

ITW stock opened at $263.56 on Friday. The company’s 50 day moving average is $250.14 and its 200 day moving average is $254.83. The stock has a market cap of $76.46 billion, a price-to-earnings ratio of 25.56, a price-to-earnings-growth ratio of 14.16 and a beta of 1.15. The company has a current ratio of 1.53, a quick ratio of 1.11 and a debt-to-equity ratio of 2.39. Illinois Tool Works has a 1-year low of $214.66 and a 1-year high of $278.13.

Institutional Investors Weigh In On Illinois Tool Works

Institutional investors and hedge funds have recently bought and sold shares of the business. Brighton Jones LLC raised its holdings in Illinois Tool Works by 5.3% in the 4th quarter. Brighton Jones LLC now owns 5,519 shares of the industrial products company’s stock worth $1,399,000 after purchasing an additional 277 shares in the last quarter. Bison Wealth LLC grew its holdings in shares of Illinois Tool Works by 2.3% during the 4th quarter. Bison Wealth LLC now owns 3,555 shares of the industrial products company’s stock worth $901,000 after acquiring an additional 81 shares during the period. Balefire LLC raised its position in shares of Illinois Tool Works by 10.6% in the 2nd quarter. Balefire LLC now owns 1,871 shares of the industrial products company’s stock worth $463,000 after acquiring an additional 180 shares in the last quarter. Sivia Capital Partners LLC lifted its stake in shares of Illinois Tool Works by 20.6% in the 2nd quarter. Sivia Capital Partners LLC now owns 1,038 shares of the industrial products company’s stock valued at $257,000 after purchasing an additional 177 shares during the period. Finally, Sovran Advisors LLC boosted its position in shares of Illinois Tool Works by 12.0% during the second quarter. Sovran Advisors LLC now owns 2,736 shares of the industrial products company’s stock valued at $706,000 after purchasing an additional 293 shares in the last quarter. Hedge funds and other institutional investors own 79.77% of the company’s stock.

Insider Activity at Illinois Tool Works

In other news, Director Pamela B. Strobel sold 1,521 shares of the stock in a transaction dated Wednesday, November 5th. The shares were sold at an average price of $245.25, for a total transaction of $373,025.25. Following the completion of the sale, the director directly owned 39,249 shares in the company, valued at approximately $9,625,817.25. This represents a 3.73% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 0.88% of the company’s stock.

Illinois Tool Works Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, January 9th. Shareholders of record on Wednesday, December 31st were given a $1.61 dividend. The ex-dividend date was Wednesday, December 31st. This represents a $6.44 dividend on an annualized basis and a dividend yield of 2.4%. Illinois Tool Works’s payout ratio is presently 62.46%.

About Illinois Tool Works

Illinois Tool Works Inc (ITW) is a diversified industrial manufacturer that designs and produces a broad array of engineered products, consumables and related service solutions for industrial customers. Its offerings span engineered fastening systems, specialty components, industrial equipment, welding products, foodservice and packaging equipment, adhesives and polymer products, and test-and-measurement technologies. These products are used as critical inputs by customers across automotive, construction, electronics, foodservice, maintenance and other industrial end markets.

The company operates a decentralized business model in which independently managed businesses focus on niche product lines and close customer relationships.