We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Illinois Tool (ITW) to Post Q3 Earnings: What's in the Cards?
Read MoreHide Full Article
Illinois Tool Works Inc. (ITW - Free Report) is scheduled to release third-quarter 2021 results on Oct 28, before market open.
The company reported impressive results in the last four quarters, the earnings surprise being 14.48%, on average. In the last reported quarter, its earnings of $2.10 surpassed the Zacks Consensus Estimate of $2.07 by 1.45%.
In the past three months, shares of Illinois Tool have lost 1% compared with the industry’s decline of 4.5%.
Image Source: Zacks Investment Research
Let us delve deeper.
Key Factors & Estimates for Q3
Healthy end-market demand and solid product offerings are anticipated to have been beneficial for Illinois Tool in the third quarter. Its impressive liquidity position, effective enterprise strategy (150 basis points contributed to the second-quarter operating margin), and gains from foreign currency movements too might have aided.
The recovery in economic activities in the United States and globally has been a key factor in boosting the demand for industrial players like Illinois Tool. For the third quarter of 2021, year-over-year growth of 4.3% was recorded in the country’s industrial production. However, shortages of semiconductor chips have restricted production activities lately. Month over month, industrial production decreased 1.3% in September and 0.1% in August, after recording growth of 1% in July.
The restricted chip supply as well as inflation in raw material costs is expected to have adversely impacted the performance of the Automotive OEM segment in the third quarter. The Zack Consensus Estimate for the segment’s revenues is pegged at $658 million for the third quarter, suggesting a year-over-year decline of 7.8% and a sequential fall of 6.9%.
The net impact of the above-mentioned headwinds and pricing actions are likely to get reflected in the company’s third-quarter results. The Zack Consensus Estimate for the company’s third-quarter earnings is pegged at $2.04 per share, indicating growth of 11.5% from the year-ago reported figure and a 2.9% decline sequentially. The consensus estimate for revenues of $3,613 million suggests a 9.3% increase from the year-ago quarter’s reported number and a 1.7% decline from the last reported quarter’s figure.
The consensus estimate for the Construction Products segment at $506 million suggests a year-over-year increase of 11% and a sequential decline of 2.3%. Food Equipment’s revenue estimates are pegged at $530 million, suggesting growth of 18% from the year-ago reported figure and an increase of 3.1% sequentially. Polymers & Fluids’ revenue estimates at $463 million indicate year-over-year growth of 5.7% and a sequential decline of 0.6%.
Specialty Products’ consensus estimate for revenues is pegged at $464 million, implying an increase of 10.5% from the year-ago quarter reported figure and a decline of 1.5% from the previous quarter. The consensus estimate for revenues of Test & Measurement and Electronics is pegged at $591 million, suggesting growth of 20.9% from the year-ago reported figure and a 2.5% decrease from the sequential figure. Welding’s revenue estimates of $392 million suggest growth of 13.3% from the year-ago reported figure and a sequential decline of 2.5%.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Illinois Tool this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is exactly not the case with Illinois Tool as is shown below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Illinois Tool has an Earnings ESP of -2.25%, with the Most Accurate Estimate of $1.99 below the Zacks Consensus Estimate of $2.04.
Illinois Tool Works Inc. Price, Consensus and EPS Surprise
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks to Consider
Here are some companies in the industry that you may want to consider as according to our model these have the right combination of elements to post an earnings beat this quarter.
Image: Bigstock
Illinois Tool (ITW) to Post Q3 Earnings: What's in the Cards?
Illinois Tool Works Inc. (ITW - Free Report) is scheduled to release third-quarter 2021 results on Oct 28, before market open.
The company reported impressive results in the last four quarters, the earnings surprise being 14.48%, on average. In the last reported quarter, its earnings of $2.10 surpassed the Zacks Consensus Estimate of $2.07 by 1.45%.
In the past three months, shares of Illinois Tool have lost 1% compared with the industry’s decline of 4.5%.
Let us delve deeper.
Key Factors & Estimates for Q3
Healthy end-market demand and solid product offerings are anticipated to have been beneficial for Illinois Tool in the third quarter. Its impressive liquidity position, effective enterprise strategy (150 basis points contributed to the second-quarter operating margin), and gains from foreign currency movements too might have aided.
The recovery in economic activities in the United States and globally has been a key factor in boosting the demand for industrial players like Illinois Tool. For the third quarter of 2021, year-over-year growth of 4.3% was recorded in the country’s industrial production. However, shortages of semiconductor chips have restricted production activities lately. Month over month, industrial production decreased 1.3% in September and 0.1% in August, after recording growth of 1% in July.
The restricted chip supply as well as inflation in raw material costs is expected to have adversely impacted the performance of the Automotive OEM segment in the third quarter. The Zack Consensus Estimate for the segment’s revenues is pegged at $658 million for the third quarter, suggesting a year-over-year decline of 7.8% and a sequential fall of 6.9%.
The net impact of the above-mentioned headwinds and pricing actions are likely to get reflected in the company’s third-quarter results. The Zack Consensus Estimate for the company’s third-quarter earnings is pegged at $2.04 per share, indicating growth of 11.5% from the year-ago reported figure and a 2.9% decline sequentially. The consensus estimate for revenues of $3,613 million suggests a 9.3% increase from the year-ago quarter’s reported number and a 1.7% decline from the last reported quarter’s figure.
The consensus estimate for the Construction Products segment at $506 million suggests a year-over-year increase of 11% and a sequential decline of 2.3%. Food Equipment’s revenue estimates are pegged at $530 million, suggesting growth of 18% from the year-ago reported figure and an increase of 3.1% sequentially. Polymers & Fluids’ revenue estimates at $463 million indicate year-over-year growth of 5.7% and a sequential decline of 0.6%.
Specialty Products’ consensus estimate for revenues is pegged at $464 million, implying an increase of 10.5% from the year-ago quarter reported figure and a decline of 1.5% from the previous quarter. The consensus estimate for revenues of Test & Measurement and Electronics is pegged at $591 million, suggesting growth of 20.9% from the year-ago reported figure and a 2.5% decrease from the sequential figure. Welding’s revenue estimates of $392 million suggest growth of 13.3% from the year-ago reported figure and a sequential decline of 2.5%.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Illinois Tool this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is exactly not the case with Illinois Tool as is shown below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Illinois Tool has an Earnings ESP of -2.25%, with the Most Accurate Estimate of $1.99 below the Zacks Consensus Estimate of $2.04.
Illinois Tool Works Inc. Price, Consensus and EPS Surprise
Illinois Tool Works Inc. price-consensus-eps-surprise-chart | Illinois Tool Works Inc. Quote
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks to Consider
Here are some companies in the industry that you may want to consider as according to our model these have the right combination of elements to post an earnings beat this quarter.
Deere & Company (DE - Free Report) presently has an Earnings ESP of +5.55% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Columbus McKinnon Corporation (CMCO - Free Report) currently has an Earnings ESP of +5.26% and a Zacks Rank #2.
Plug Power, Inc. (PLUG - Free Report) presently has an Earnings ESP of +16.28% and a Zacks Rank #3.