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Illinois Tool Works (ITW) Lags Q2 Earnings and Revenues

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Illinois Tool Works Inc. (ITW - Free Report) is a worldwide manufacturer of highly engineered products and specialty systems. The company’s diversified range of industrial products and equipment are sold in 56 countries. It currently has a $49.8 billion market capitalization.

Despite a long-term growth potential, this industrial tool maker faces risks from global uncertainties, industry rivalry and adverse foreign currency movements. Investors are eagerly waiting for the company’s latest earnings report.

Illinois Tool Works delivered better-than-expected results in the last four quarters, pulling off an average positive earnings surprise of 3.28%.

Illinois Tool Works Inc. Price, Consensus and EPS Surprise
 

Illinois Tool Works Inc. Price, Consensus and EPS Surprise | Illinois Tool Works Inc. Quote

Currently, Illinois Tool Works carries a Zacks Rank #3 (Hold), but that could definitely change after the release of second-quarter 2018 earnings report. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: Illinois Tool Works’ earnings came in at $1.97 per share in second-quarter of 2018. The bottom line result lagged the Zacks Consensus Estimate of $1.98 per share.

Revenue: Revenues lagged. Illinois Tool Works generated revenues of $3,831 million, below the Zacks Consensus Estimate of $3,852 million.

Key Stats to Note: Illinois Tool Works’ operating margin in the second quarter grew 50 basis points (bps) year over year to 24.3%. Enterprise initiatives added 110 bps to operating margin growth, offsetting 70 bps of adverse impacts of price/costs. The company revised down its earnings guidance to $7.50-$7.70, accounting for 12 cents of negative foreign currency translation impact predicted for the second half of 2018.

Stock Price: Illinois Tool Works shares were up roughly 1% ahead of the report.

Check back our full write up on this ITW earnings report later!

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