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Earnings Review and Free Research Report: Illinois Tool Works’ EPS Increased 23%

Research Desk Line-up: Lennox Intl. Post Earnings Coverage

LONDON, UK / ACCESSWIRE / October 30, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Illinois Tool Works Inc. (NYSE: ITW), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=ITW, following the Company's announcement of its financial results on October 23, 2017, for the third quarter fiscal 2017. The Company's operating revenue increased 4% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Diversified Machinery industry. Pro-TD has currently selected Lennox International Inc. (NYSE: LII) for due-diligence and potential coverage as the Company reported on October 23, 2017, its financial results for Q3 2017. Register for a free membership today, and be among the early birds that get access to our report on Lennox Intl. when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on ITW; also brushing on LII. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

For three months ended September 30, 2017, Illinois Tool Works' operating revenue increased 4% to $3.62 billion from $3.50 billion in Q3 FY16. Operating revenue surpassed analysts' expectations of $43.58 billion.

During Q3 FY17, the Company's gross profit increased 3.6% to $1.52 billion from $1.47 million in the same period last year. For the reported quarter, the Company's gross margin was 42% of revenue, at par with the 42% of revenue reported in Q3 FY16.

For the reported quarter, Illinois Tool Works' selling, administrative, and research and development expenses decreased 2.4% to $589 million from $604 million in Q3 FY16. During Q3 FY17, the Company's amortization expenses decreased 8.9% to $51 million from $56 million in the same period last year.

During Q3 FY17, Illinois Tool Works' operating income increased 18.9% to $961 million from $808 million in the same period last year. For the reported quarter, the Company's operating margin increased 350 basis points to 26.6% of revenue from 23.1% of revenue in Q3 FY16.

For the reported quarter, Illinois Tool Works' net income increased 19.6% to $640 million on a y-o-y basis from $535 million in Q3 FY16. During Q3 FY17, the Company's diluted EPS increased 23.3% to $1.85 on a y-o-y basis from $1.50 in the same period last year. For the reported quarter, the Company's adjusted diluted EPS increased 14% to $1.71 on a y-o-y basis. Adjusted diluted EPS surpassed analysts' expectations of $1.65.

Illinois Tool Works' Segment Details

Automotive OEM - During Q3 FY17, the Automotive OEM segment's total revenue increased 4.1% to $795 million on a y-o-y basis. For the reported quarter, the segment's operating margin decreased 20 basis points to 21.6% of revenue from 21.8% of revenue in Q3 FY16.

Food Equipment - During Q3 FY17, the Food Equipment segment's total revenue increased 1.1% to $549 million on a y-o-y basis. For the reported quarter, the segment's operating margin decreased 10 basis points to 27.3% of revenue from 27.4% of revenue in Q3 FY16.

Test & Measurement and Electronics - During Q3 FY17, the Test & Measurement and Electronics segment's total revenue increased 1.8% to $525 million on a y-o-y basis. For the reported quarter, the segment's operating margin increased 310 basis points to 24.1% of revenue from 21.0% of revenue in Q3 FY16.

Welding - During Q3 FY17, the Welding segment's total revenue increased 4.8% to $378 million on a y-o-y basis. For the reported quarter, the segment's operating margin increased basis 10 basis points to 26.6% of revenue from 26.5% of revenue in Q3 FY16.

Polymers & Fluids - During Q3 FY17, the Polymers & Fluids segment's total revenue increased 2.6% to $434 million on a y-o-y basis. For the reported quarter, the segment's operating margin was 21% of revenue, on par with the 21% of revenue reported in Q3 FY16.

Construction Products - During Q3 FY17, the Construction Products segment's total revenue increased 6% to $440 million on a y-o-y basis. For the reported quarter, the segment's operating margin increased 280 basis points to 25.4% of revenue from 22.6% of revenue in Q3 FY16.

Specialty Products - During Q3 FY17, the Specialty Products segment's total revenue increased 4.6% to $498 million on a y-o-y basis. For the reported quarter, the segment's operating margin increased 160 basis points to 27.7% of revenue from 26.1% of revenue in Q3 FY16.

Balance Sheet

As on September 30, 2017, Illinois Tool Works' cash and equivalents increased 12.6% to $2.79 billion from $2.47 billion on December 31, 2016.

During Q3 FY17, the Company's trade receivables increased 13.3% to $2.67 billion from $2.36 billion in the fourth quarter of 2016.

For the reported quarter, Illinois Tool Works' inventories increased 13.8% to $1.23 billion from $1.08 billion in Q4 FY16.

For the reported quarter, the Company's accounts payable increased 14.4% to $585 million from $511 million in the fourth quarter of 2016.

For the reported quarter, the Company's long-term debt increased 3.6% to $7.44 billion from $7.18 billion in Q4 FY16.

During Q3 FY17, Illinois Tool Works' cash provided by operating activities increased 25% to $780 million from $624 million in the same period last year.

For the reported quarter, the Company's free cash flow increased 29.2% to $702 million from $543 million in Q3 FY16.

Outlook

For FY17, Illinois Tool Works expects EPS to be in the range of $6.62 to $6.72.

Stock Performance

At the closing bell, on Friday, October 27, 2017, Illinois Tool Works' stock slightly climbed 0.99%, ending the trading session at $159.06. A total volume of 1.14 million shares have exchanged hands, which was higher than the 3-month average volume of 1.11 million shares. The Company's stock price soared 13.04% in the last three months, 15.55% in the past six months, and 40.36% in the previous twelve months. Moreover, the stock rallied 29.89% since the start of the year. The stock is trading at a PE ratio of 24.39 and has a dividend yield of 1.96%. The stock currently has a market cap of $54.83 billion.

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SOURCE: Pro-Trader Daily