Illinois Tool Works Surpasses Third Quarter Earnings Estimates; Shares Rise 2%

GLENVIEW, Ill. - Illinois Tool Works Inc. (NYSE:ITW) reported third-quarter earnings on Wednesday that exceeded expectations and raised its year-end outlook, resulting in a 2.7% increase in the stock during early trading.
The industrial manufacturer announced adjusted earnings of $2.65 per share for the third quarter, surpassing analysts' forecasts of $2.51. Revenue came in at $4 billion, slightly below the consensus estimate of $4.02 billion.
Illinois Tool Works experienced a 1.4% year-over-year decline in organic revenue for the quarter. However, the company improved its operating margin to 26.5%, benefiting from a 130 basis point contribution from corporate initiatives.
CEO Christopher A. O'Herlihy stated, "Throughout the year, our focused execution and operational excellence have enabled the Company to effectively respond to ongoing market challenges, achieving solid growth in margin and profitability."
Looking ahead, Illinois Tool Works raised its earnings per share forecast for 2024 to a range of $11.63 to $11.73, significantly above the previous analyst consensus of $10.17. The company maintained its expectations for approximately flat revenue and organic growth for the year.
Illinois Tool Works repurchased $375 million of its shares in the third quarter and raised its quarterly dividend by 7%, increasing it to $6.00 annually.