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Valued at a market cap of $67.9 billion, Illinois Tool Works Inc. (ITW) manufactures and sells a diverse range of industrial products and equipment, serving various sectors including automotive, construction, electronics, food, beverage, and medical components. The Glenview, Illinois-based company is expected to announce its fiscal Q1 earnings for 2025 before the market opens on Wednesday, Apr. 30.
Prior to this event, analysts project this industrial products manufacturer to report a profit of $2.34 per share, down 4.1% from $2.44 per share in the year-ago quarter. The company has a solid trajectory of consistently beating Wall Street's earnings estimates in each of the last four quarters. Its earnings of $2.54 per share in the previous quarter outpaced the consensus estimates by 2%.
For the full year, analysts expect ITW to report EPS of $10.29, up 1.4% from $10.15 in fiscal 2024. Its EPS is expected to further grow 8.1% year over year to $11.12 in fiscal 2026.
Shares of ITW have declined 8.5% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 4.4% gain, and the Industrial Select Sector SPDR Fund’s (XLI) 2.4% rise over the same time frame.
On Feb. 5, shares of ITW closed down marginally after reporting mixed Q4 results. On a positive note, its net income of $2.54 per share improved 6.7% from the year-ago quarter and topped the consensus estimates by 2%. This robust earnings growth was supported by a 140 basis point expansion in operating margin, largely driven by successful enterprise initiatives that enhanced operational efficiency. However, its revenue declined 1.3% year-over-year to $3.9 billion, falling short of Wall Street expectations by a similar margin. A marginal drop in organic revenue, mainly fueled by softness in the automotive OEM and construction products segments, contributed to the top-line miss and tempered investor sentiment.
Wall Street analysts are cautious about ITW’s stock, with a "Hold" rating overall. Among 17 analysts covering the stock, three recommend "Strong Buy," 11 advise “Hold,” and three suggest “Strong Sell” rating. The mean price target for ITW is $254.40, which indicates a 10.7% potential upside from the current levels.
