Here's What Key Metrics Tell Us About Illinois Tool Works (ITW) Q2 Earnings
For the quarter ended June 2023, Illinois Tool Works (ITW) reported revenue of $4.07 billion, up 1.6% over the same period last year. EPS came in at $2.41, compared to $2.37 in the year-ago quarter.
The reported revenue represents a surprise of -1.41% over the Zacks Consensus Estimate of $4.13 billion. With the consensus EPS estimate being $2.39, the EPS surprise was +0.84%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Illinois Tool Works performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Operating Revenue - Organic growth - Total ITW: 3% versus 4.48% estimated by four analysts on average.
Operating Revenue - Test & Measurement and Electronics - Organic growth: 1.1% versus 4.1% estimated by four analysts on average.
Operating Revenue - Automotive OEM - Organic growth: 16.3% versus the four-analyst average estimate of 11.53%.
Operating Revenue - Specialty Products - Organic growth: -3.6% versus -1.27% estimated by four analysts on average.
Operating Revenues- Test & Measurement and Electronics: $700 million versus the five-analyst average estimate of $715.56 million. The reported number represents a year-over-year change of +0.6%.
Operating Revenues- Construction Products: $526 million versus $542.21 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -6.9% change.
Operating Revenues- Food Equipment: $654 million versus the five-analyst average estimate of $658.32 million. The reported number represents a year-over-year change of +6.5%.
Operating Revenues- Specialty Products: $423 million versus the five-analyst average estimate of $441.49 million. The reported number represents a year-over-year change of -5.4%.
Operating Revenues- Intersegment revenues: -$4 million versus the five-analyst average estimate of -$4.07 million. The reported number represents a year-over-year change of 0%.
Operating Revenues- Automotive OEM: $826 million compared to the $786.35 million average estimate based on five analysts. The reported number represents a change of +16.2% year over year.
Operating Revenues- Welding: $490 million versus the five-analyst average estimate of $509.71 million. The reported number represents a year-over-year change of +0.8%.
Operating Revenues- Polymers & Fluids: $459 million versus the five-analyst average estimate of $485.82 million. The reported number represents a year-over-year change of -7.5%.
View all Key Company Metrics for Illinois Tool Works here>>>
Shares of Illinois Tool Works have returned +5% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report
