Zacks Research Issues Pessimistic Outlook for ITW Earnings

Illinois Tool Works Inc. (NYSE:ITW) – Equities research analysts at Zacks Research lowered their FY2027 earnings per share (EPS) estimates for Illinois Tool Works in a research note issued to investors on Wednesday, January 14th. Zacks Research analyst Team now expects that the industrial products company will post earnings of $12.04 per share for the year, down from their previous forecast 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 issued its quarterly earnings data on Friday, October 24th. The industrial products company reported $2.81 earnings per share for the quarter, beating the consensus estimate of $2.72 by $0.09. Illinois Tool Works had a return on equity of 93.26% and a net margin of 19.05%.The business had revenue of $4.06 billion for the quarter, compared to analysts’ expectations of $4.09 billion. During the same period last year, the business earned $3.91 EPS. The business’s revenue was up 2.3% on a year-over-year basis. Illinois Tool Works has set its FY 2025 guidance at 10.400-10.500 EPS.

Several other equities research analysts have also commented on ITW. Weiss Ratings reiterated a “buy (b-)” rating on shares of Illinois Tool Works in a research note on Friday, October 31st. Deutsche Bank Aktiengesellschaft raised their target price on Illinois Tool Works from $265.00 to $268.00 and gave the company a “hold” rating in a research report on Thursday, October 2nd. Bank of America raised shares of Illinois Tool Works from an “underperform” rating to a “neutral” rating and boosted their price target for the stock from $220.00 to $255.00 in a report on Tuesday, November 18th. Barclays raised their price objective on shares of Illinois Tool Works from $243.00 to $244.00 and gave the stock an “underweight” rating in a report on Monday, October 27th. Finally, Wolfe Research boosted their target price on shares of Illinois Tool Works from $264.00 to $278.00 and gave the company an “underperform” rating in a research note on Thursday. Two research analysts have rated the stock with a Buy rating, seven have given a Hold rating and five have given a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Reduce” and a consensus target price of $261.08.

Illinois Tool Works Stock Up 1.2%

ITW opened at $261.95 on Friday. Illinois Tool Works has a fifty-two week low of $214.66 and a fifty-two week high of $278.13. The company has a debt-to-equity ratio of 2.39, a current ratio of 1.53 and a quick ratio of 1.11. The company’s 50-day moving average is $249.78 and its 200 day moving average is $254.72. The firm has a market capitalization of $75.99 billion, a P/E ratio of 25.41, a PEG ratio of 13.88 and a beta of 1.15.

Institutional Trading of Illinois Tool Works

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. increased its position in shares of Illinois Tool Works by 1.3% during the second quarter. Vanguard Group Inc. now owns 26,723,774 shares of the industrial products company’s stock valued at $6,607,453,000 after buying an additional 335,955 shares during the period. State Street Corp increased its holdings in Illinois Tool Works by 0.9% during the 2nd quarter. State Street Corp now owns 12,476,310 shares of the industrial products company’s stock worth $3,103,167,000 after acquiring an additional 108,919 shares during the period. Geode Capital Management LLC lifted its stake in Illinois Tool Works by 1.9% in the 2nd quarter. Geode Capital Management LLC now owns 6,765,540 shares of the industrial products company’s stock worth $1,670,246,000 after purchasing an additional 122,990 shares in the last quarter. Capital Research Global Investors grew its position in shares of Illinois Tool Works by 3.0% during the 3rd quarter. Capital Research Global Investors now owns 4,493,555 shares of the industrial products company’s stock valued at $1,171,740,000 after purchasing an additional 131,702 shares in the last quarter. Finally, Massachusetts Financial Services Co. MA increased its holdings in shares of Illinois Tool Works by 12.3% in the second quarter. Massachusetts Financial Services Co. MA now owns 3,797,055 shares of the industrial products company’s stock worth $938,822,000 after purchasing an additional 415,982 shares during the period. 79.77% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In other Illinois Tool Works news, Director Pamela B. Strobel sold 1,521 shares of the stock in a transaction on Wednesday, November 5th. The stock was sold at an average price of $245.25, for a total transaction of $373,025.25. Following the sale, the director owned 39,249 shares in the company, valued at $9,625,817.25. This represents a 3.73% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Corporate insiders own 0.88% of the company’s stock.

Illinois Tool Works Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, January 9th. Investors of record on Wednesday, December 31st were issued a $1.61 dividend. The ex-dividend date of this dividend was Wednesday, December 31st. This represents a $6.44 annualized dividend and a yield of 2.5%. Illinois Tool Works’s dividend payout ratio (DPR) is 62.46%.

Illinois Tool Works Company Profile

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.