NYSE$ITW

Illinois Tool Works Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

ITW delivered solid third quarter results, navigating market challenges with strong operational execution.

ITW reported third quarter revenue of $4.0 billion, a decrease of 2% with organic growth declining 1%. GAAP EPS was $3.91, including a divestiture gain of $1.26; ex-gain EPS was $2.65, an increase of 4%. The company is raising full year GAAP EPS guidance by $1.33 to a range of $11.63 to $11.73 per share.

  • Revenue of $4.0 billion, a decrease of 2% as organic growth declined 1%.
  • Operating margin of 26.5% as enterprise initiatives contributed 130 basis points.
  • GAAP EPS of $3.91 included a divestiture gain of $1.26; ex-gain EPS of $2.65, an increase of 4%.
  • Raising full year GAAP EPS guidance by $1.33 to a range of $11.63 to $11.73 per share.

Headline financials

Total Revenue

$3.97B

Previous: $4.03B-1.6%
EPS (adj)

$2.65

Previous: $2.55+3.9%
Capital Expenditures

-$319M

Previous: -$324M+1.5%
Free Cash Flow

$841M

Previous: $448M+87.7%
Net Income

$1.16B

Previous: $772M+50.3%
Operating Income

$1.05B

Previous: $1.07B-1.7%
Gross Profit

$1.74B

Previous: $1.71B+1.4%
Cash & Equivalents

$947M

Previous: $990M-4.3%
Total Assets

$15.8B

Previous: $15.4B+2.8%
Stock-Based Comp

$14M

Previous: $17M-17.6%

Revenue & EPS history

ITW · Revenue · Quarterly

$3.97B

Q3 2024-1.6%vs Q3 2023
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 incorporating the impact of the divestiture gain and a lower projected effective tax rate for the full year of approximately 21.5 percent into its 2024 guidance and raising GAAP EPS by $1.33 from the previous range of $10.30 to $10.40 to a new range of $11.63 to $11.73 per share. Based on current levels of demand and foreign currency exchange rates, the Company is maintaining its previous guidance for revenue and organic growth to be approximately flat for 2024. Operating margin is projected to be in the range of 26.5 to 27 percent, an improvement of 165 basis points at the midpoint, with enterprise initiatives projected to contribute more than 100 basis points. Free cash flow is projected to be approximately 100 percent of adjusted net income and the company plans to repurchase approximately $1.5 billion of its own shares.

Tailwinds

  • Raising GAAP EPS guidance by $1.33 to a range of $11.63 to $11.73 per share.
  • Maintaining previous guidance for revenue and organic growth to be approximately flat for 2024.
  • Operating margin is projected to be in the range of 26.5 to 27 percent, an improvement of 165 basis points at the midpoint.
  • Enterprise initiatives projected to contribute more than 100 basis points.
  • Free cash flow is projected to be approximately 100 percent of adjusted net income.

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 2024

Historical avgQ3 2024

-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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