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The Zacks Consensus Estimate for ITW’s second-quarter earnings has been revised 0.4% downward in the past 60 days. Illinois Tool's earnings surpassed the Zacks Consensus Estimate in three of the preceding four quarters and missed the mark in one, the average beat being 1.4%.
Let’s see how things are shaping up for Illinois Tool this earnings season.
Key Factors and Estimates for Q2
Illinois Tool’s enterprise strategy, including business structure simplification and portfolio Management, is likely to have augmented its top-line performance in the to-be-reported quarter.
Illinois Tool acquired MTS Systems Corporation’s test and simulation business in December 2021. The buyout, which boosted its Test & Measurement and Electronics segment, and enhanced its product offerings and technical abilities by expanding its footprint in various end markets, is expected to have contributed to top-line growth.
However, weakness in auto production due to supply-chain disruptions (particularly shortage of components) is likely to have affected Specialty products and the Automotive OEM segments' sales in the second quarter. Inflation in raw material costs as well as high cost of sales, and selling, general and administrative expenses might have hurt ITW’s bottom line in the quarter. Unfavorable movements in foreign currencies are likely to have affected Illinois Tool’s overseas business in second-quarter 2022.
The Zacks Consensus Estimate for Illinois Tool’s revenues is pegged at $3,985 million for the second quarter, suggesting an 8.4% increase from the year-ago quarter’s reported number. Earnings estimates are pegged at $2.22, indicating an increase of 5.7% from the year-ago period’s reported figure.
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. But this is not the case here, as you will see below.
Zacks Rank: Illinois Tool currently carries a Zacks Rank #4 (Sell).
Highlights of Q1 Earnings
Illinois Tool’s earnings surpassed estimates by 1.9%, while sales beat the same by 4.6%. ITW’s adjusted earnings (excluding a five-cent impact of unfavorable foreign currency translation) in the quarter were $2.11, surpassing the Zacks Consensus Estimate of $2.07. Earnings were flat with the year-ago figure. ITW generated revenues of $3,939 million in the reported quarter, reflecting growth of 11.2% from the year-ago quarter’s figure.
Stocks to Consider
Here are some companies worth considering within the broader Industrial Products sector, as according to our model, these have the right combination of elements to beat on earnings this reporting cycle.
MRC Global Inc. (MRC - Free Report) has an Earnings ESP of +30.27% and a Zacks Rank of 1. MRC is slated to release second-quarter 2022 financial numbers on Aug 8.
In the past 60 days, MRC’s earnings estimates have increased 13.6% for the second quarter of 2022. MRC Global’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 140.8%.
Crane Holdings (CR - Free Report) has an Earnings ESP of +6.98% and a Zacks Rank #2. CR is slated to release second-quarter 2022 financial numbers on Jul 25.
In the past 60 days, CR’s earnings estimates have increased 4.1% for the second quarter of 2022. Crane Holdings’ earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 22.2%.
Zebra Technologies (ZBRA - Free Report) has an Earnings ESP of +2.15% and a Zacks Rank of 2. ZBRA is scheduled to release second-quarter 2022 earnings numbers on Aug 2.
In the past 60 days, ZBRA’s earnings estimates have been unchanged for the second quarter of 2022. Zebra Technologies’ earnings trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average being 8.8%.
Image: Bigstock
Illinois Tool (ITW) to Post Q2 Earnings: What's in Store?
Illinois Tool Works Inc. (ITW - Free Report) is scheduled to release second-quarter 2022 results on Aug 2, before market open.
The Zacks Consensus Estimate for ITW’s second-quarter earnings has been revised 0.4% downward in the past 60 days. Illinois Tool's earnings surpassed the Zacks Consensus Estimate in three of the preceding four quarters and missed the mark in one, the average beat being 1.4%.
Let’s see how things are shaping up for Illinois Tool this earnings season.
Key Factors and Estimates for Q2
Illinois Tool’s enterprise strategy, including business structure simplification and portfolio Management, is likely to have augmented its top-line performance in the to-be-reported quarter.
Illinois Tool acquired MTS Systems Corporation’s test and simulation business in December 2021. The buyout, which boosted its Test & Measurement and Electronics segment, and enhanced its product offerings and technical abilities by expanding its footprint in various end markets, is expected to have contributed to top-line growth.
However, weakness in auto production due to supply-chain disruptions (particularly shortage of components) is likely to have affected Specialty products and the Automotive OEM segments' sales in the second quarter. Inflation in raw material costs as well as high cost of sales, and selling, general and administrative expenses might have hurt ITW’s bottom line in the quarter. Unfavorable movements in foreign currencies are likely to have affected Illinois Tool’s overseas business in second-quarter 2022.
The Zacks Consensus Estimate for Illinois Tool’s revenues is pegged at $3,985 million for the second quarter, suggesting an 8.4% increase from the year-ago quarter’s reported number. Earnings estimates are pegged at $2.22, indicating an increase of 5.7% from the year-ago period’s reported figure.
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. But this is not the case here, as you will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Illinois Tool has an Earnings ESP of -1.58% as the Most Accurate Estimate of $2.18 is below the Zacks Consensus Estimate of $2.22.
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 #4 (Sell).
Highlights of Q1 Earnings
Illinois Tool’s earnings surpassed estimates by 1.9%, while sales beat the same by 4.6%. ITW’s adjusted earnings (excluding a five-cent impact of unfavorable foreign currency translation) in the quarter were $2.11, surpassing the Zacks Consensus Estimate of $2.07. Earnings were flat with the year-ago figure. ITW generated revenues of $3,939 million in the reported quarter, reflecting growth of 11.2% from the year-ago quarter’s figure.
Stocks to Consider
Here are some companies worth considering within the broader Industrial Products sector, as according to our model, these have the right combination of elements to beat on earnings this reporting cycle.
MRC Global Inc. (MRC - Free Report) has an Earnings ESP of +30.27% and a Zacks Rank of 1. MRC is slated to release second-quarter 2022 financial numbers on Aug 8.
In the past 60 days, MRC’s earnings estimates have increased 13.6% for the second quarter of 2022. MRC Global’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 140.8%.
Crane Holdings (CR - Free Report) has an Earnings ESP of +6.98% and a Zacks Rank #2. CR is slated to release second-quarter 2022 financial numbers on Jul 25.
In the past 60 days, CR’s earnings estimates have increased 4.1% for the second quarter of 2022. Crane Holdings’ earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 22.2%.
Zebra Technologies (ZBRA - Free Report) has an Earnings ESP of +2.15% and a Zacks Rank of 2. ZBRA is scheduled to release second-quarter 2022 earnings numbers on Aug 2.
In the past 60 days, ZBRA’s earnings estimates have been unchanged for the second quarter of 2022. Zebra Technologies’ earnings trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average being 8.8%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.