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Illinois Tool Works (ITW) Q2 Earnings: What's in Store?
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Illinois Tool Works Inc. (ITW - Free Report) is scheduled to report second-quarter 2018 results on Jul 23, before the market opens.
The company pulled off an average positive earnings surprise of 3.28% over the last four quarters. Notably, in the last reported quarter, Illinois Tool’s earnings of $1.90 per share surpassed the Zacks Consensus Estimate by 2.7%. Estimate for the to-be-reported quarter is pegged at $1.97. The stock currently carries a Zacks Rank #3 (Hold).
Let us see how things are shaping up for the company prior to this announcement.
Factors to Influence Q2 Results
Illinois Tool’s second-quarter results are expected to reflect organic revenue growth across all seven segments. The company’s top-line performance will also likely display favorable impact of its product-launching initiatives. Notably, aggregate organic revenue growth for the quarter under review is currently projected at 3-4%.
Growth in global auto production and increased penetration in the Chinese end-markets will likely continue to bolster the company’s Automotive segment revenues. The Zacks Consensus Estimate for the second-quarter revenues of this segment is currently pegged at $909 million, higher than $820 million recorded in the year-ago quarter.
Higher institutional sales and stronger chain restaurants business in North America are anticipated to drive the Food Equipment segment’s top-line performance going forward. Notably, stable service and international side businesses will also back this upswing.
However, the segment’s top line in the quarter to be reported might be hurt due to persistent downside in grocery business. The Zacks Consensus Estimate for the segment’s second-quarter revenues is currently pegged at $552 million, higher than $529 million recorded in the year-ago quarter.
Elevated demand in the semiconductor end-markets and strength in the Instron business will likely continue to propel revenue growth of Illinois Tool’s Test & Measurement and Electronics segment. The Zacks Consensus Estimate for the segment’s second-quarter revenues is currently pegged at $579 million, higher than $519 million recorded in the year-ago quarter.
Higher demand across shipping, automotive and heavy equipment end-markets are expected to bolster the Welding segment’s revenues. Notably, strength in oil and gas market is also anticipated to back this upside in the quarters ahead. The Zacks Consensus Estimate for the segment’s second-quarter revenues is currently pegged at $421 million, higher than $385 million recorded in the year-earlier quarter.
Revenues of the company’s Construction Products segment will likely be higher in the upcoming quarters, backed by elevated residential construction demand. The Zacks Consensus Estimate for the segment’s second-quarter revenues is currently pegged at $457 million, higher than $425 million recorded in the prior-year quarter.
The company’s Polymers & Fluids segment is also expected to witness high organic revenue growth in the quarters ahead. The Zacks Consensus Estimate for this segment’s second-quarter revenues is currently pegged at $510 million, higher than $490 million recorded in the year-earlier quarter.
Illinois Tool expects that its solid top-line performance, ongoing enterprise initiatives and strategic price/cost management efforts will augment the company’s bottom-line performance in the near term. Notably, the company anticipates that lower corporate tax rates and tax benefits to be secured through cash repatriation from overseas end-marts will also likely aid in enhancing its profitability, moving ahead.
Nevertheless, persistent inflation in the prices of inputs like chemicals and resins as well as escalating freight charges remains causes of concern for the stock.
Illinois Tool currently anticipates to report earnings of $1.90-$2.00 per share in the second quarter, marking 15% projected growth from the year-ago tally of $1.69 per share.
Stocks to Consider
Our proven model provides some idea on the stocks that are about to release their earnings results. Per the model, a stock needs to have a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy) or 2 (Buy) or at least 3 for a likely earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
However, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing a negative estimate revision momentum.
Here are some companies in the Zacks Industrial sector that you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Graco Inc. (GGG - Free Report) , with an Earnings ESP of +4.00% and a Zacks Rank #1.
Eaton Corp. plc (ETN - Free Report) , with an Earnings ESP of +1.03% and a Zacks Rank #2.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Illinois Tool Works (ITW) Q2 Earnings: What's in Store?
Illinois Tool Works Inc. (ITW - Free Report) is scheduled to report second-quarter 2018 results on Jul 23, before the market opens.
The company pulled off an average positive earnings surprise of 3.28% over the last four quarters. Notably, in the last reported quarter, Illinois Tool’s earnings of $1.90 per share surpassed the Zacks Consensus Estimate by 2.7%. Estimate for the to-be-reported quarter is pegged at $1.97. The stock currently carries a Zacks Rank #3 (Hold).
Let us see how things are shaping up for the company prior to this announcement.
Factors to Influence Q2 Results
Illinois Tool’s second-quarter results are expected to reflect organic revenue growth across all seven segments. The company’s top-line performance will also likely display favorable impact of its product-launching initiatives. Notably, aggregate organic revenue growth for the quarter under review is currently projected at 3-4%.
Growth in global auto production and increased penetration in the Chinese end-markets will likely continue to bolster the company’s Automotive segment revenues. The Zacks Consensus Estimate for the second-quarter revenues of this segment is currently pegged at $909 million, higher than $820 million recorded in the year-ago quarter.
Higher institutional sales and stronger chain restaurants business in North America are anticipated to drive the Food Equipment segment’s top-line performance going forward. Notably, stable service and international side businesses will also back this upswing.
However, the segment’s top line in the quarter to be reported might be hurt due to persistent downside in grocery business. The Zacks Consensus Estimate for the segment’s second-quarter revenues is currently pegged at $552 million, higher than $529 million recorded in the year-ago quarter.
Elevated demand in the semiconductor end-markets and strength in the Instron business will likely continue to propel revenue growth of Illinois Tool’s Test & Measurement and Electronics segment. The Zacks Consensus Estimate for the segment’s second-quarter revenues is currently pegged at $579 million, higher than $519 million recorded in the year-ago quarter.
Higher demand across shipping, automotive and heavy equipment end-markets are expected to bolster the Welding segment’s revenues. Notably, strength in oil and gas market is also anticipated to back this upside in the quarters ahead. The Zacks Consensus Estimate for the segment’s second-quarter revenues is currently pegged at $421 million, higher than $385 million recorded in the year-earlier quarter.
Revenues of the company’s Construction Products segment will likely be higher in the upcoming quarters, backed by elevated residential construction demand. The Zacks Consensus Estimate for the segment’s second-quarter revenues is currently pegged at $457 million, higher than $425 million recorded in the prior-year quarter.
The company’s Polymers & Fluids segment is also expected to witness high organic revenue growth in the quarters ahead. The Zacks Consensus Estimate for this segment’s second-quarter revenues is currently pegged at $510 million, higher than $490 million recorded in the year-earlier quarter.
Illinois Tool expects that its solid top-line performance, ongoing enterprise initiatives and strategic price/cost management efforts will augment the company’s bottom-line performance in the near term. Notably, the company anticipates that lower corporate tax rates and tax benefits to be secured through cash repatriation from overseas end-marts will also likely aid in enhancing its profitability, moving ahead.
Nevertheless, persistent inflation in the prices of inputs like chemicals and resins as well as escalating freight charges remains causes of concern for the stock.
Illinois Tool currently anticipates to report earnings of $1.90-$2.00 per share in the second quarter, marking 15% projected growth from the year-ago tally of $1.69 per share.
Stocks to Consider
Our proven model provides some idea on the stocks that are about to release their earnings results. Per the model, a stock needs to have a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy) or 2 (Buy) or at least 3 for a likely earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
However, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing a negative estimate revision momentum.
Here are some companies in the Zacks Industrial sector that you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Atkore International Group Inc. (ATKR - Free Report) , with an Earnings ESP of +1.49% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Graco Inc. (GGG - Free Report) , with an Earnings ESP of +4.00% and a Zacks Rank #1.
Eaton Corp. plc (ETN - Free Report) , with an Earnings ESP of +1.03% and a Zacks Rank #2.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>