NYSE$ITW
Illinois Tool Works Inc · Q4 2020 earnings
Q4 2020 earnings · · Investor relations
Briefing
ITW demonstrated strong execution and financial performance, generating record Q4 operating income, operating margin, and ROIC performance.
ITW reported a 0.2% increase in fourth-quarter revenue to $3.5 billion, with a 7% increase in operating income to $883 million. The operating margin was a record 25.4%, and GAAP EPS increased by 2% to $2.02. The company provided 2021 guidance, including EPS growth of 18% at the mid-point.
- Total revenue of $3.5 billion, an increase of 5% versus Q3 2020
- Record Q4 operating income of $883 million, an increase of 7% year-over-year
- Record Q4 operating margin of 25.4% as enterprise initiatives contributed 130 basis points
- GAAP EPS of $2.02, an increase of 2%, or 7% excluding $0.11 of divestiture gains in Q4 2019
Headline financials
Revenue & EPS history
ITW · Revenue · Quarterly
$3.48B
Revenue by segment
ITW · $3.48B total across 7 segments · Q4 2020
- Automotive OEM$800M—23.0%
- Test & Measurement$534M—15.3%
- Food Equipment$471M—13.5%
- Specialty Products$439M—12.6%
- Polymers & Fluids$437M—12.6%
- Construction Products$430M—12.4%
- Welding$368M—10.6%
Forward guidance
The company initiated full-year GAAP EPS guidance in a range of $7.60 to $8.00 per share, an increase of 15 to 21 percent. Organic growth is expected to be in the range of seven to ten percent. Revenue is expected to grow in the range of nine to twelve percent.
Tailwinds
- Organic growth of 7 to 10%
- Revenue growth of 9 to 12%
- Foreign currency translation to increase revenues by approximately two percent.
- Operating margin is expected to be in a range of 24 to 25 percent
- Free cash flow is expected to be greater than 100 percent of net income
Headwinds
- PLS impact is forecasted to be approximately 50 basis points.
- Effective tax rate in the range of 23 to 24 percent.
- Potential effects of the COVID-19 pandemic
- Expected impact of tariffs and raw material inflation
- Product line simplification activities
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 Q4 2020
-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
| Quarter | Report date | Reaction (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% | — | — |
Discussion
Share your read of this quarter. Sign-in carries your eToro identity.
Join the conversation
Sign in with eToro to post your read of this quarter and vote on others'.
Sign in with eToro