Equities research analysts expect that Illinois Tool Works Inc. (NYSE:ITW) will post sales of $3.73 billion for the current quarter, Zacks reports. Seven analysts have provided estimates for Illinois Tool Works’ earnings, with the highest sales estimate coming in at $3.77 billion and the lowest estimate coming in at $3.64 billion. Illinois Tool Works reported sales of $3.62 billion during the same quarter last year, which would suggest a positive year over year growth rate of 3%. The firm is expected to report its next quarterly earnings report on Monday, October 22nd.
On average, analysts expect that Illinois Tool Works will report full year sales of $15.02 billion for the current year, with estimates ranging from $14.87 billion to $15.08 billion. For the next fiscal year, analysts expect that the company will report sales of $15.50 billion per share, with estimates ranging from $15.30 billion to $15.63 billion. Zacks Investment Research’s sales averages are an average based on a survey of sell-side analysts that that provide coverage for Illinois Tool Works.
Illinois Tool Works (NYSE:ITW) last released its earnings results on Monday, July 23rd. The industrial products company reported $1.97 EPS for the quarter, meeting analysts’ consensus estimates of $1.97. Illinois Tool Works had a return on equity of 56.74% and a net margin of 12.70%. The company had revenue of $3.83 billion during the quarter, compared to the consensus estimate of $3.85 billion. During the same quarter last year, the company earned $1.69 earnings per share. Illinois Tool Works’s quarterly revenue was up 6.4% compared to the same quarter last year.
ITW has been the subject of several research reports. ValuEngine downgraded Illinois Tool Works from a “hold” rating to a “sell” rating in a research note on Wednesday, August 8th. Credit Suisse Group cut their price target on Illinois Tool Works from $166.00 to $146.00 and set a “neutral” rating for the company in a research note on Tuesday, July 24th. Goldman Sachs Group reaffirmed a “neutral” rating on shares of Illinois Tool Works in a research note on Tuesday, July 24th. Robert W. Baird cut their price target on Illinois Tool Works from $155.00 to $141.00 and set a “hold” rating for the company in a research note on Tuesday, July 24th. Finally, Deutsche Bank set a $151.00 price target on Illinois Tool Works and gave the stock a “hold” rating in a research note on Tuesday, July 24th. Three analysts have rated the stock with a sell rating, twelve have issued a hold rating and five have issued a buy rating to the company. Illinois Tool Works presently has an average rating of “Hold” and a consensus target price of $159.82.
Illinois Tool Works stock traded up $0.48 during midday trading on Monday, reaching $139.43. The company’s stock had a trading volume of 1,290,008 shares, compared to its average volume of 1,570,984. Illinois Tool Works has a fifty-two week low of $134.66 and a fifty-two week high of $179.07. The company has a debt-to-equity ratio of 1.60, a quick ratio of 1.35 and a current ratio of 1.73. The company has a market cap of $45.77 billion, a P/E ratio of 21.16, a price-to-earnings-growth ratio of 1.75 and a beta of 1.25.
The company also recently declared a quarterly dividend, which will be paid on Tuesday, October 9th. Stockholders of record on Friday, September 28th will be paid a dividend of $1.00 per share. This represents a $4.00 annualized dividend and a dividend yield of 2.87%. The ex-dividend date is Thursday, September 27th. This is an increase from Illinois Tool Works’s previous quarterly dividend of $0.78. Illinois Tool Works’s payout ratio is 47.34%.
Illinois Tool Works announced that its board has approved a share repurchase program on Friday, August 3rd that authorizes the company to buyback $3.00 billion in shares. This buyback authorization authorizes the industrial products company to buy up to 6.4% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s management believes its stock is undervalued.
In related news, Director Richard H. Lenny acquired 1,778 shares of the company’s stock in a transaction that occurred on Friday, July 27th. The stock was purchased at an average price of $140.85 per share, for a total transaction of $250,431.30. The purchase was disclosed in a document filed with the SEC, which is available at this link. Company insiders own 0.82% of the company’s stock.
A number of institutional investors have recently bought and sold shares of the stock. Andra AP fonden increased its position in Illinois Tool Works by 30.1% during the 2nd quarter. Andra AP fonden now owns 46,200 shares of the industrial products company’s stock worth $6,401,000 after purchasing an additional 10,700 shares in the last quarter. Schroder Investment Management Group increased its position in Illinois Tool Works by 68.0% during the 2nd quarter. Schroder Investment Management Group now owns 871,859 shares of the industrial products company’s stock worth $120,803,000 after purchasing an additional 352,757 shares in the last quarter. Carnegie Capital Asset Management LLC increased its position in Illinois Tool Works by 50.6% during the 2nd quarter. Carnegie Capital Asset Management LLC now owns 30,500 shares of the industrial products company’s stock worth $4,190,000 after purchasing an additional 10,253 shares in the last quarter. Private Wealth Partners LLC increased its position in Illinois Tool Works by 75.7% during the 2nd quarter. Private Wealth Partners LLC now owns 74,194 shares of the industrial products company’s stock worth $10,279,000 after purchasing an additional 31,977 shares in the last quarter. Finally, Bank of Nova Scotia grew its holdings in Illinois Tool Works by 102.4% in the 2nd quarter. Bank of Nova Scotia now owns 79,345 shares of the industrial products company’s stock valued at $10,993,000 after buying an additional 40,134 shares during the period. Hedge funds and other institutional investors own 77.69% of the company’s stock.
About Illinois Tool Works
Illinois Tool Works Inc manufactures and sells industrial products and equipment worldwide. It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products. The Automotive OEM segment offers plastic and metal components, fasteners, and assemblies for automobiles, light trucks, and other industrial uses.
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