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Illinois Tool Works Inc. Earnings: Revenue Grows Again by Double-Digits

S&P 500 component Illinois Tool Works Inc. reported its results for the fourth quarter. Illinois Tool Works manufactures a range of industrial products and equipment for the automotive, construction, electronics, food/beverage, packaging, power system, decorative surfaces, and medical industries.

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Illinois Tool Works Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for Illinois Tool Works Inc. rose to $442.2 million (91 cents per share) vs. $335.7 million (67 cents per share) in the same quarter a year earlier. This marks a rise of 31.7% from the year earlier quarter.

Revenue: Rose 10.4% to $4.32 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: ITW beat the mean analyst estimate of 88 cents per share. Analysts were expecting revenue of $4.36 billion.

Quoting Management: “Our fourth quarter financial performance was a solid effort by the ITW team,” said Chairman and Chief Executive Officer David B. Speer. “We produced strong top line growth, solid margin improvement and impressive free operating cash flow. The fourth quarter capped off very strong full-year performance, with 2011 revenues growing 15.4 percent and organic revenues increasing 7.5 percent. This helped us achieve record 2011 full-year revenues as well as record operating earnings. We also delivered 15.4 percent operating margins that were 80 basis points higher than 2010.”

Key Stats:

The company has now beaten estimates the last two quarters. In the third quarter, it topped expectations with net income of $1 versus a mean estimate of net income of 98 cents per share.

Looking Forward: Expectations for the company’s next quarter performance are more favorable than they were a month ago. The average estimate for the first quarter of the next fiscal year is now at 98 cents per share, up from 98 cents. The average estimate for the fiscal year is now $3.73 per share, down from $3.74 sixty days ago.

Competitors to Watch: Dover Corporation , Nordson Corporation , Entegris, Inc. , Graco Inc. , Flow International Corp. , 3M Company , Myers Industries, Inc. , Taylor Devices, Inc. , Core Molding Tech., Inc. , and Pall Corporation .

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com