Illinois Tool Works (NYSE:ITW) Issues Earnings Results, Beats Expectations By $0.09 EPS

Illinois Tool Works (NYSE:ITW) posted its quarterly earnings results on Friday. The industrial products company reported $2.81 earnings per share for the quarter, beating analysts’ consensus estimates of $2.72 by $0.09, Zacks reports. Illinois Tool Works had a return on equity of 90.89% and a net margin of 21.31%.The business had revenue of $4.06 billion for the quarter, compared to analysts’ expectations of $4.09 billion. During the same quarter in the prior year, the business earned $3.91 EPS. The firm’s revenue for the quarter was up 2.3% on a year-over-year basis. Illinois Tool Works updated its FY 2025 guidance to 10.400-10.500 EPS.

Illinois Tool Works Stock Performance

NYSE:ITW opened at $245.91 on Friday. The stock’s 50-day simple moving average is $259.36 and its 200 day simple moving average is $251.63. The firm has a market capitalization of $71.68 billion, a PE ratio of 21.55, a price-to-earnings-growth ratio of 5.70 and a beta of 1.10. The company has a quick ratio of 1.15, a current ratio of 1.59 and a debt-to-equity ratio of 2.40. Illinois Tool Works has a twelve month low of $214.66 and a twelve month high of $279.13.

Illinois Tool Works Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, October 10th. Stockholders of record on Tuesday, September 30th were issued a dividend of $1.61 per share. This is an increase from Illinois Tool Works’s previous quarterly dividend of $1.50. The ex-dividend date of this dividend was Tuesday, September 30th. This represents a $6.44 annualized dividend and a dividend yield of 2.6%. Illinois Tool Works’s payout ratio is currently 56.44%.

Insiders Place Their Bets

In related news, CAO Randall J. Scheuneman sold 6,802 shares of the firm’s stock in a transaction dated Thursday, September 11th. The stock was sold at an average price of $265.08, for a total value of $1,803,074.16. Following the sale, the chief accounting officer directly owned 10,314 shares of the company’s stock, valued at $2,734,035.12. This trade represents a 39.74% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. 0.88% of the stock is owned by company insiders.

Institutional Trading of Illinois Tool Works

Several large investors have recently bought and sold shares of the business. Lazard Asset Management LLC boosted its position in shares of Illinois Tool Works by 1,278.4% during the second quarter. Lazard Asset Management LLC now owns 103,639 shares of the industrial products company’s stock valued at $25,624,000 after buying an additional 96,120 shares during the last quarter. Ameriprise Financial Inc. boosted its position in Illinois Tool Works by 1.1% in the second quarter. Ameriprise Financial Inc. now owns 2,554,468 shares of the industrial products company’s stock worth $631,685,000 after purchasing an additional 28,762 shares during the last quarter. Voleon Capital Management LP boosted its position in Illinois Tool Works by 394.4% in the second quarter. Voleon Capital Management LP now owns 35,713 shares of the industrial products company’s stock worth $8,830,000 after purchasing an additional 28,490 shares during the last quarter. Sei Investments Co. boosted its position in Illinois Tool Works by 22.0% in the second quarter. Sei Investments Co. now owns 106,784 shares of the industrial products company’s stock worth $26,401,000 after purchasing an additional 19,248 shares during the last quarter. Finally, State of Tennessee Department of Treasury boosted its position in Illinois Tool Works by 21.6% in the second quarter. State of Tennessee Department of Treasury now owns 89,962 shares of the industrial products company’s stock worth $22,243,000 after purchasing an additional 15,953 shares during the last quarter. 79.77% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on ITW. UBS Group increased their price target on Illinois Tool Works from $243.00 to $255.00 and gave the company a “neutral” rating in a research note on Thursday, July 31st. Stifel Nicolaus increased their price target on Illinois Tool Works from $255.00 to $261.00 and gave the company a “hold” rating in a research note on Thursday, July 31st. Citigroup increased their price objective on Illinois Tool Works from $254.00 to $265.00 and gave the stock a “neutral” rating in a research report on Monday, July 14th. Truist Financial increased their price objective on Illinois Tool Works from $283.00 to $298.00 and gave the stock a “hold” rating in a research report on Wednesday, October 8th. Finally, Weiss Ratings reiterated a “buy (b)” rating on shares of Illinois Tool Works in a research report on Wednesday, October 8th. Two research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Reduce” and an average target price of $262.83.

Illinois Tool Works Company Profile

Illinois Tool Works Inc manufactures and sells industrial products and equipment in the United States and internationally. It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products.