NYSE$ITW

Illinois Tool Works Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

ITW's Q1 2022 results reflected strong momentum, with revenue growth driven by organic expansion and strategic acquisitions.

ITW reported a strong first quarter in 2022, with revenue up 11.2% to $3.9 billion and organic growth of 10.6%. GAAP EPS was $2.11, and the company is raising its full-year guidance for organic growth and GAAP EPS.

  • Total revenue reached $3.9 billion, with organic growth of 11%.
  • GAAP EPS was $2.11, including a negative impact of $0.05 from foreign currency translation.
  • Operating margin stood at 22.7%, or 23.4% when excluding the MTS acquisition's dilution.
  • Full-year guidance was raised for GAAP EPS to $9.00-$9.40 and organic revenue growth to 7-10%.

Headline financials

Total Revenue

$3.94B

Previous: $3.54B+11.1%
EPS (adj)

$2.11

Previous: $2.11+0.0%
Organic revenue growth

10.6%

Previous: 6.0%+76.7%
Capital Expenditures

-$74M

Previous: -$68M-8.8%
Free Cash Flow

$588M

Previous: $603M-2.5%
Net Income

$662M

Previous: $671M-1.3%
Operating Income

$895M

Previous: $905M-1.1%
Gross Profit

$1.58B

Previous: $1.51B+5.1%
Cash & Equivalents

$1.3B

Previous: $2.48B-47.8%
Total Assets

$16.3B

Previous: $15.7B+4.0%
Stock-Based Comp

$16M

Previous: $11M+45.5%

Revenue & EPS history

ITW · Revenue · Quarterly

$3.94B

Q1 2022+11.1%vs Q1 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

ITW · $3.95B total across 7 segments · Q1 2022

  • Automotive OEM
    $760M-2.9%
  • Test & Measurement
    $685M+24.1%
  • Food Equipment
    $566M+25.5%
  • Construction Products
    $551M+17.5%
  • Polymers & Fluids
    $481M+10.6%
  • Specialty Products
    $452M-1.1%
  • Welding
    $450M+12.2%

Forward guidance

ITW is raising its full-year organic growth guidance to 7 to 10 percent and full-year revenue growth guidance to 8.5 to 11.5 percent. The company is also raising its full-year GAAP EPS guidance to $9.00 to $9.40 per share.

Tailwinds

  • Full-year organic growth guidance raised to 7-10%.
  • Full-year revenue growth guidance raised to 8.5-11.5%.
  • MTS acquisition expected to add 3% to revenue.
  • Full-year GAAP EPS guidance raised to $9.00-$9.40 per share.
  • Operating margin expected to expand to 24-25%.

Headwinds

  • Foreign currency translation is expected to reduce revenue by 1.5%.
  • Margin dilution impact from the acquisition of MTS is expected to be 50 basis points.
  • Price/cost impact is expected to reduce margin by 100 basis points.
  • Higher working capital investments to support revenue growth.
  • Increased inventory levels to mitigate supply chain risk.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.0%

Avg return

Earnings day

+0.1%

Avg return

5 days after

+1.2%

Avg return

30 days after

49%

36 / 73 earnings

Positive

+6.5%

Q1 2022

Best reaction

-7.7%

Q2 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.7%-4.2%-7.0%
Q4 2025+4.5%+11.1%+6.9%
Q3 2025-4.5%-6.0%-3.8%
Q2 2025+0.9%+0.9%+4.3%
Q1 2025-0.8%-0.4%+1.4%
Q4 2024-0.2%+1.2%+7.8%
Q3 2024+2.0%+3.1%+8.4%
Q2 2024-0.3%-1.7%+1.0%
Q1 2024-2.8%-2.1%-4.6%
Q4 2023-1.9%-2.0%-0.3%
Q3 2023+1.6%+0.4%+8.2%
Q2 2023-5.1%-6.3%-6.1%
Q1 2023-5.5%-6.3%-9.7%
Q4 2022+3.0%-0.1%-0.3%
Q3 2022+3.4%+6.6%+13.9%
Q2 2022+0.6%+1.6%-4.9%
Q1 2022+6.5%+4.6%+4.6%
Q4 2021-3.0%-4.4%-10.1%
Q3 2021+2.6%+3.6%+5.6%
Q2 2021-1.3%-0.4%+1.0%
Q1 2021+1.2%+2.1%+0.4%
Q4 2020+3.6%+4.0%+6.6%
Q3 2020-0.9%-4.5%+1.1%
Q2 2020+0.1%+1.5%+8.1%
Q1 2020+0.3%+1.7%+12.9%
Q4 2019-0.8%+4.4%-5.7%
Q3 2019+6.1%+6.3%+8.4%
Q2 2019-1.8%-2.8%-7.7%
Q1 2019-2.1%-0.8%-7.1%
Q4 2018+0.8%+0.2%+5.2%
Q3 2018-3.1%-0.6%+6.0%
Q2 2018-5.9%-4.5%-7.3%
Q1 2018-6.0%-5.0%-2.8%
Q4 2017+1.0%+2.2%-5.3%
Q3 2017+2.2%+2.6%+3.0%
Q2 2017-3.8%-4.4%-7.3%
Q1 2017+3.3%+2.4%+3.4%
Q4 2016+0.9%+1.4%+3.6%
Q3 2016-2.3%-3.4%+7.1%
Q2 2016+2.6%+3.3%+7.7%
Q1 2016-1.0%
Q4 2015+5.3%
Q3 2015+5.2%
Q2 2015-3.0%
Q1 2015-2.7%
Q4 2014-1.7%
Q3 2014+3.2%
Q2 2014-0.8%
Q1 2014+0.9%
Q4 2013+0.0%
Q3 2013+0.8%
Q2 2013-3.1%
Q1 2013+5.6%
Q4 2012-2.9%
Q3 2012-0.7%
Q2 2012-1.6%
Q1 2012+4.2%
Q4 2011+0.2%
Q3 2011-1.1%
Q2 2011-7.7%
Q1 2011+1.1%
Q4 2010-0.2%
Q4 2007-0.2%
Q3 2010+0.7%
Q2 2010+0.1%
Q1 2009+4.1%
Q1 2010+0.5%
Q4 2009+1.9%
Q3 2008-1.3%
Q3 2009-1.3%
Q2 2009-0.9%
Q4 2008-0.9%
Q2 2008-0.9%

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