Free Research Report as Illinois Tool Works’ Revenue Jumped 7%; Adjusted EPS Advanced 19%

Stock Monitor: John Bean Technologies Post Earnings Reporting

LONDON, UK / ACCESSWIRE / July 30, 2018 / If you want access to our free earnings report on Illinois Tool Works Inc. (NYSE: ITW) (“ITW”), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=ITW. Illinois Tool Works reported its second quarter fiscal 2018 operating and financial results on July 20, 2018. The equipment manufacturer for the transportation, power, food, and construction industries provided guidance for the upcoming quarter and fiscal year. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for John Bean Technologies Corporation (NYSE: JBT), which also belongs to the Industrial Goods sector as the Company Illinois Tool Works. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Illinois Tool Works most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=ITW

Earnings Highlights and Summary

For the three months ended ITW’s revenue was up 7% to $3.83 billion compared to $3.60 billion with 4% organic growth. The Company’s reported numbers lagged behind analysts’ estimates of $3.85 billion.

During Q2 2018, ITW’s operating income was $932 million, reflecting an increase of 7% compared to $872 million in Q2 2017, and operating margin was 24.3%, up 10 basis point (bps) compared to the year ago corresponding period. Excluding Q2 2017 legal settlement, the Company’s operating income rose 9% on a y-o-y basis and operating margin increased 50 bps. ITW’s enterprise Initiatives contributed 110 bps of margin improvement, more than offsetting 70 bps of unfavorable price/cost impact.

ITW reported GAAP earnings of $666 million, or $1.97 per share, in Q2 2018 compared to earnings of $587 million, or $1.69 per share, in Q2 2017. The Company recorded a benefit of $0.03 per share related to a legal settlement in Q2 2017. Excluding this item, ITW’s earnings advanced 19% on a y-o-y basis. ITW’s earnings fell short of Wall Street’s expectation of $1.98 per share.

During Q2 2018, ITW’s all seven business segments delivered positive y-o-y revenue growth, led by Welding with 13%, followed by Test & Measurement and Electronics and Specialty both up 4% compared to the year ago same period.

Cash Matters

For Q2 2018, ITW’s after-tax return on invested capital was 28.7%, reflecting an improvement of 440 bps, of which 400 basis points resulted from new US tax rules and regulations.

In Q2 2108, ITW’s free cash flow surged 38% to $533 million on a y-o-y basis. During the reported quarter, the company repurchased $500 million of its own shares.

Outlook

ITW stated that based on current foreign exchange rates, the Company’s H2 2018 earnings per share are projected to have a $0.12 negative currency impact versus prior guidance.

For FY18, ITW adjusted earnings guidance to reflect this impact and is now forecasting earnings in the range of $7.50 to $7.70 per share, or 15% growth at the midpoint. The Company also revised its outlook for operating margin to a range of 24% to 25% reflecting price/cost related margin dilution.

ITW continues to expect organic growth of 3% to 4%, free cash flow at or above 100% of net income, and an effective tax rate of approximately 25% for FY18. The Company is expecting to repurchase $1.5 billion of its own shares in FY18.

During Q3 2018, ITW is projecting earnings to be in the range of $1.80 to $1.90 per share, with revenue expected to grow 2% to 3% and organic growth of 3% to 4%.

Stock Performance Snapshot

July 27, 2018 – At Friday’s closing bell, Illinois Tool Works’ stock slightly fell 0.74%, ending the trading session at $140.21.

Volume traded for the day: 1.12 million shares.

After last Friday’s close, Illinois Tool Works’ market cap was at $47.70 billion.

Price to Earnings (P/E) ratio was at 18.90.

The stock has a dividend yield of 2.23%.

The stock is part of the Industrial Goods sector, categorized under the Diversified Machinery industry.

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