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Illinois Tools (ITW) to Report Q4 Earnings: What's in Store?
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Illinois Tool Works Inc. (ITW - Free Report) is scheduled to release fourth-quarter 2021 results on Feb 3, before market open.
The company delivered better-than-expected results in the last four quarters, the earnings surprise being 12.85%, on average. In the last reported quarter, the company’s earnings of $2.77 surpassed the Zacks Consensus Estimate of $2.47 by 12.15%.
In the past three months, shares of Illinois Tool have gained 1.6% against the industry’s decline of 5.7%.
Image Source: Zacks Investment Research
Let us delve deeper.
Key Factors & Estimates for Q4
Illinois Tool’s fourth-quarter results are expected to reflect the benefits of diversified end-market exposure, solid product offerings and gains from enterprise strategy. Notably, operating margin expansion of 100 basis points (bps) driven by enterprise strategy was recorded in the third quarter of 2021.
Synergies from acquired assets are expected to have strengthened the performance. In fourth-quarter 2021, Illinois Tool added the test and simulation business of MTS Systems Corporation to its portfolio. The acquired assets are part of the company’s Test & Measurement and Electronics segment.
On the macro front, industrial companies like Illinois Tool might have benefited from better operating activities in the country, as evident from a 4% year-over-year increase in industrial production in the fourth quarter. Also, the country’s GDP in the fourth quarter expanded 6.9% year over year.
On the flip side, supply-chain restrictions, especially those related to the availability of components in Automotive OEM, and inflation in raw material costs are likely to reflect on the quarter’s results. Pricing actions are likely to have provided support. For 2021, the company anticipates pricing actions/inflation in raw material costs to lower operating margin by 150 bps.
For 2021, Illinois Tool predicts earnings of $8.30-$8.50 per share, below the previously mentioned $8.55-$8.95. Revenue growth (organic) is anticipated to be 11-12% year over year, lower compared with the previously stated 11-13%. Total revenue growth is likely to be 13-14% compared with 14-16% mentioned previously.
The Zacks Consensus Estimate for Illinois Tool’s revenues is pegged at $3,531 million for the fourth quarter of 2021, suggesting a 1.6% increase from the year-ago quarter’s reported number and a 0.7% decline from the previous quarter’s reported figure. Earnings estimates are pegged at $1.89, indicating a decrease of 10.4% from the year-ago reported figure and a 6.4% fall from the previous quarter’s reported number.
On a segmental basis, the Zacks Consensus Estimate for the Automotive OEM’s revenues is pegged at $631 million, indicating a 2.5% decrease from the previous quarter's figure. Then again, the estimate for Food Equipment’s revenues is pegged at $553 million, suggesting growth of 1.7% from the previous quarter. The Construction Products’ revenues estimate is pegged at $438 million, indicating an 8.4% decrease from the previous quarter's figure.
The Zacks Consensus Estimate for Polymers & Fluids’ fourth-quarter revenues is pegged at $440 million, suggesting a sequential decrease of 3.5%. Specialty Products’ consensus estimate for revenues is pegged at $459 million, implying no change from the previous quarter. The consensus estimate for revenues of Test & Measurement and Electronics is pegged at $571 million, suggesting growth of 3.4% from the sequential figure. Welding’s revenue estimate of $422 million suggests a decline of 0.7% from the previous quarter.
Earnings Whispers
Our proven model suggests 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 chances of beating estimates. This is exactly the case with Illinois Tool as 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 +0.22% as the Most Accurate Estimate of $1.90 is above the Zacks Consensus Estimate of $1.89.
Illinois Tool Works Inc. Price, Consensus and EPS Surprise
Zacks Rank: Illinois Tool currently carries a Zacks Rank #3.
Other Stocks to Consider
Here are some other companies that you may want to consider as, according to our model, these too have the right combination of elements to beat on earnings this reporting cycle.
The Zacks Consensus Estimate for Sealed Air’s earnings is pegged at $1.14 per share for the fourth quarter of 2021. The company delivered better-than-expected results in three of the last four quarters, while lagging estimates once. The average earnings surprise for SEE is 6.54%.
AGCO Corporation (AGCO - Free Report) presently has an Earnings ESP of +13.66% and a Zacks Rank of 2.
For the fourth quarter of 2021, the Zacks Consensus Estimate for AGCO’s earnings has been decreased by 0.6% to $1.72 in the past 60 days. The company delivered better-than-expected results in the last four quarters, with an earnings surprise of 47.53%, on average.
Chart Industries, Inc. (GTLS - Free Report) currently has an Earnings ESP of +1.74% and a Zacks Rank #3.
The Zacks Consensus Estimate for Chart Industries’ earnings is pegged at 67 cents per share for the fourth quarter of 2021. GTLS delivered better-than-expected results in two of the last four quarters, while lagging estimates twice. The earnings surprise was 15.36%, on average.
Image: Bigstock
Illinois Tools (ITW) to Report Q4 Earnings: What's in Store?
Illinois Tool Works Inc. (ITW - Free Report) is scheduled to release fourth-quarter 2021 results on Feb 3, before market open.
The company delivered better-than-expected results in the last four quarters, the earnings surprise being 12.85%, on average. In the last reported quarter, the company’s earnings of $2.77 surpassed the Zacks Consensus Estimate of $2.47 by 12.15%.
In the past three months, shares of Illinois Tool have gained 1.6% against the industry’s decline of 5.7%.
Let us delve deeper.
Key Factors & Estimates for Q4
Illinois Tool’s fourth-quarter results are expected to reflect the benefits of diversified end-market exposure, solid product offerings and gains from enterprise strategy. Notably, operating margin expansion of 100 basis points (bps) driven by enterprise strategy was recorded in the third quarter of 2021.
Synergies from acquired assets are expected to have strengthened the performance. In fourth-quarter 2021, Illinois Tool added the test and simulation business of MTS Systems Corporation to its portfolio. The acquired assets are part of the company’s Test & Measurement and Electronics segment.
On the macro front, industrial companies like Illinois Tool might have benefited from better operating activities in the country, as evident from a 4% year-over-year increase in industrial production in the fourth quarter. Also, the country’s GDP in the fourth quarter expanded 6.9% year over year.
On the flip side, supply-chain restrictions, especially those related to the availability of components in Automotive OEM, and inflation in raw material costs are likely to reflect on the quarter’s results. Pricing actions are likely to have provided support. For 2021, the company anticipates pricing actions/inflation in raw material costs to lower operating margin by 150 bps.
For 2021, Illinois Tool predicts earnings of $8.30-$8.50 per share, below the previously mentioned $8.55-$8.95. Revenue growth (organic) is anticipated to be 11-12% year over year, lower compared with the previously stated 11-13%. Total revenue growth is likely to be 13-14% compared with 14-16% mentioned previously.
The Zacks Consensus Estimate for Illinois Tool’s revenues is pegged at $3,531 million for the fourth quarter of 2021, suggesting a 1.6% increase from the year-ago quarter’s reported number and a 0.7% decline from the previous quarter’s reported figure. Earnings estimates are pegged at $1.89, indicating a decrease of 10.4% from the year-ago reported figure and a 6.4% fall from the previous quarter’s reported number.
On a segmental basis, the Zacks Consensus Estimate for the Automotive OEM’s revenues is pegged at $631 million, indicating a 2.5% decrease from the previous quarter's figure. Then again, the estimate for Food Equipment’s revenues is pegged at $553 million, suggesting growth of 1.7% from the previous quarter. The Construction Products’ revenues estimate is pegged at $438 million, indicating an 8.4% decrease from the previous quarter's figure.
The Zacks Consensus Estimate for Polymers & Fluids’ fourth-quarter revenues is pegged at $440 million, suggesting a sequential decrease of 3.5%. Specialty Products’ consensus estimate for revenues is pegged at $459 million, implying no change from the previous quarter. The consensus estimate for revenues of Test & Measurement and Electronics is pegged at $571 million, suggesting growth of 3.4% from the sequential figure. Welding’s revenue estimate of $422 million suggests a decline of 0.7% from the previous quarter.
Earnings Whispers
Our proven model suggests 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 chances of beating estimates. This is exactly the case with Illinois Tool as 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 +0.22% as the Most Accurate Estimate of $1.90 is above the Zacks Consensus Estimate of $1.89.
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: Illinois Tool currently carries a Zacks Rank #3.
Other Stocks to Consider
Here are some other companies that you may want to consider as, according to our model, these too have the right combination of elements to beat on earnings this reporting cycle.
Sealed Air Corporation (SEE - Free Report) currently has an Earnings ESP of +1.75% and is a Zacks #2 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Sealed Air’s earnings is pegged at $1.14 per share for the fourth quarter of 2021. The company delivered better-than-expected results in three of the last four quarters, while lagging estimates once. The average earnings surprise for SEE is 6.54%.
AGCO Corporation (AGCO - Free Report) presently has an Earnings ESP of +13.66% and a Zacks Rank of 2.
For the fourth quarter of 2021, the Zacks Consensus Estimate for AGCO’s earnings has been decreased by 0.6% to $1.72 in the past 60 days. The company delivered better-than-expected results in the last four quarters, with an earnings surprise of 47.53%, on average.
Chart Industries, Inc. (GTLS - Free Report) currently has an Earnings ESP of +1.74% and a Zacks Rank #3.
The Zacks Consensus Estimate for Chart Industries’ earnings is pegged at 67 cents per share for the fourth quarter of 2021. GTLS delivered better-than-expected results in two of the last four quarters, while lagging estimates twice. The earnings surprise was 15.36%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.