NYSE$ITW

Illinois Tool Works Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

ITW's Q3 2023 performance was driven by its business model and diversified portfolio, resulting in strong operational execution and financial results.

ITW reported a revenue of $4.0 billion, a 0.5% increase, and an operating income of $1.1 billion, a 9% increase. The company's GAAP EPS increased by 9% to $2.55. The operating margin expanded by 200 basis points year over year to 26.5 percent, and free cash flow grew 40 percent.

  • Revenue increased by 0.5% to $4.0 billion.
  • Operating income increased by 9% to $1.1 billion.
  • Operating margin expanded by 200 basis points to 26.5%.
  • GAAP EPS increased by 9% to $2.55.

Headline financials

Total Revenue

$4.03B

Previous: $4.01B+0.5%
EPS (adj)

$2.55

Previous: $2.35+8.5%
Organic revenue growth

0.2%

Previous: 16.0%-98.8%
Capital Expenditures

-$324M

Previous: -$256M-26.6%
Free Cash Flow

$448M

Previous: $471M-4.9%
Net Income

$772M

Previous: $727M+6.2%
Operating Income

$1.07B

Previous: $983M+8.9%
Gross Profit

$1.71B

Previous: $1.64B+4.4%
Cash & Equivalents

$990M

Previous: $774M+27.9%
Total Assets

$15.4B

Previous: $15.2B+1.1%
Stock-Based Comp

$17M

Previous: $15M+13.3%

Revenue & EPS history

ITW · Revenue · Quarterly

$4.03B

Q3 2023+0.5%vs Q3 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

ITW · $4.04B total across 7 segments · Q3 2023

  • Automotive OEM
    $799M+6.1%
  • Test & Measurement
    $698M-2.4%
  • Food Equipment
    $678M+7.1%
  • Construction Products
    $522M-0.9%
  • Welding
    $468M-1.9%
  • Polymers & Fluids
    $458M-3.2%
  • Specialty Products
    $414M-5.5%

Forward guidance

ITW is narrowing the range of its full year GAAP EPS guidance from $9.55 to $9.95 per share to a range of $9.65 to $9.85 per share. The company is projecting total revenue growth of one to two percent with organic growth of two to three percent.

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 Q3 2023

Historical avgQ3 2023

-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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