186.80 +1.81 (0.98%)
Before hours: 9:07AM EDT
|Bid||148.93 x 800|
|Ask||2,150.00 x 1000|
|Day's Range||182.54 - 185.44|
|52 Week Range||115.94 - 190.85|
|Beta (5Y Monthly)||1.17|
|PE Ratio (TTM)||27.16|
|Earnings Date||Oct 23, 2020 - Oct 27, 2020|
|Forward Dividend & Yield||4.28 (2.31%)|
|Ex-Dividend Date||Jun 29, 2020|
|1y Target Est||166.69|
ITW earnings call for the period ending June 30, 2020.
Illinois Tool's (ITW) second-quarter results reflect the adverse impacts of the pandemic on sales performance and weak operating margin, partially offset by enterprise initiatives and cost savings.
Illinois Tool Works (ITW) delivered earnings and revenue surprises of 55.71% and 8.66%, respectively, for the quarter ended June 2020. Do the numbers hold clues to what lies ahead for the stock?
* Total revenue of $2.6 billion as organic revenue declined 27% * Operating margin of 17.5% * Operating income of $449 million * GAAP EPS of $1.01 * Free cash flow of $681 million, 213% of net incomeGLENVIEW, Ill., July 31, 2020 (GLOBE NEWSWIRE) -- Illinois Tool Works Inc. (NYSE: ITW) today reported its second quarter 2020 results.“Our performance in the second quarter clearly demonstrates that the progress we have made on executing our long-term enterprise strategy has put ITW in a position of considerable strength in managing through the effects of the global pandemic,” said E. Scott Santi, chairman and chief executive officer. “Our powerful ITW Business Model and decentralized, entrepreneurial culture are never more valuable than during times of significant and rapid change, and I want to thank all of my ITW colleagues around the world for their incredible care and commitment to keeping their co-workers safe while continuing to serve our customers with excellence. Our people responded to an unprecedented health crisis and a 29 percent decline in revenues and still delivered $449 million in operating income, $681 million in free cash flow, and operating margin of 17.5 percent. Strong proactive divisional leadership and our flexible cost structure allowed us to reduce operating expenses by over $140 million in the quarter despite the fact that we made the decision to provide full compensation and benefits support to every ITW team member for the entirety of the second quarter.”“Looking forward, while significant end-market disruption and uncertainties remain, we will continue to leverage our financial strength and ample liquidity to prioritize playing offense in the recovery over playing defense in the contraction and to ensure that every one of our businesses is strongly positioned to fully participate in the recovery. Despite the near-term challenges of the moment, we remain deeply committed to achieving and sustaining ITW’s full-potential performance, and we will utilize our financial strength and flexible cost structure to protect investments in areas of strategic importance to the execution of our long-term strategy. I am confident that the strength and resilience of the ITW Business Model, our high-quality diversified business portfolio, and our people put us in a strong position to deal decisively and effectively with the effects of the pandemic however it plays out from here while remaining focused on executing our long-term enterprise strategy,” Santi concluded.Second Quarter ResultsSecond-quarter revenue of $2.6 billion declined 29 percent with organic revenue down 27 percent. Foreign currency translation and divestitures reduced revenues by 1.5 percent and 1.0 percent, respectively. Revenues improved sequentially as the quarter progressed.Operating margin was 17.5 percent compared to 24.1 percent in the prior year period as the lower volume impact was partially offset by benefits from Enterprise Initiatives of 100 basis points. GAAP earnings per share (EPS) were $1.01 compared to $1.91 in the prior year period. Free cash flow increased 12 percent to $681 million with a 213 percent conversion rate. After-tax return on invested capital was 16.8 percent. The effective tax rate for the second quarter was 21.3 percent.At quarter end, ITW had approximately $1.8 billion in cash and cash equivalents on hand, essentially no short-term debt and a revolving credit facility in place that could provide additional liquidity of up to $2.5 billion, if needed.On May 5, 2020, ITW suspended annual guidance for 2020 due to uncertainties regarding the duration and severity of the COVID-19 pandemic.Non-GAAP Measures This earnings release contains certain non-GAAP financial measures. A reconciliation of these measures to the most directly comparable GAAP measures is included in the attached supplemental reconciliation schedule.Forward-looking Statement This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements regarding the potential effects of the COVID-19 pandemic, related government actions and the Company’s strategy in response thereto on the Company’s business, the anticipated duration of the Company’s COVID-19 containment and recovery phases, the Company’s financial scenario planning and estimates, expected access to liquidity sources, expected capital allocation, diluted earnings per share, foreign exchange rates, total and organic revenue, operating margin, economic and regulatory conditions in various geographic regions, expected dividend payments, price/cost impact, restructuring expenses, expected adjustments to capacity and cost structure, free cash flow, effective tax rate, after-tax return on invested capital, timing and amount of share repurchases, if any, potential acquisitions and dispositions and related impact on financial results, and plans regarding the issuance of guidance. These statements are subject to certain risks, uncertainties, assumptions and other factors that could cause actual results to differ materially from those anticipated. Such factors include those contained in ITW’s Form 10-K for 2019 and subsequent reports filed with the SEC.About Illinois Tool Works ITW (NYSE: ITW) is a Fortune 200 global multi-industrial manufacturing leader with revenues totaling $14.1 billion in 2019. The company’s seven industry-leading segments leverage the unique ITW Business Model to drive solid growth with best-in-class margins and returns in markets where highly innovative, customer-focused solutions are required. ITW’s approximately 45,000 dedicated colleagues around the world thrive in the company’s decentralized and entrepreneurial culture. www.itw.comILLINOIS TOOL WORKS INC. and SUBSIDIARIES STATEMENT OF INCOME (UNAUDITED) Three Months Ended Six Months Ended June 30, June 30, In millions except per share amounts2020 2019 2020 2019 Operating Revenue$2,564 $3,609 $5,792 $7,161 Cost of revenue1,594 2,099 3,465 4,158 Selling, administrative, and research and development expenses486 598 1,046 1,209 Amortization and impairment of intangible assets35 41 71 84 Operating Income449 871 1,210 1,710 Interest expense(51) (55) (102) (118) Other income (expense)8 9 33 23 Income Before Taxes406 825 1,141 1,615 Income Taxes87 202 256 395 Net Income$319 $623 $885 $1,220 Net Income Per Share: Basic$1.01 $1.92 $2.79 $3.74 Diluted$1.01 $1.91 $2.78 $3.72 Cash Dividends Per Share: Paid$1.07 $1.00 $2.14 $2.00 Declared$1.07 $1.00 $2.14 $2.00 Shares of Common Stock Outstanding During the Period: Average316.1 324.8 317.2 326.0 Average assuming dilution317.4 326.6 318.6 327.9 ILLINOIS TOOL WORKS INC. and SUBSIDIARIES STATEMENT OF FINANCIAL POSITION (UNAUDITED)In millionsJune 30, 2020 December 31, 2019 Assets Current Assets: Cash and equivalents$1,812 $1,981 Trade receivables2,156 2,461 Inventories1,167 1,164 Prepaid expenses and other current assets253 296 Assets held for sale221 351 Total current assets5,609 6,253 Net plant and equipment1,711 1,729 Goodwill4,443 4,492 Intangible assets801 851 Deferred income taxes470 516 Other assets1,229 1,227 $14,263 $15,068 Liabilities and Stockholders’ Equity Current Liabilities: Short-term debt$4 $4 Accounts payable402 472 Accrued expenses1,106 1,217 Cash dividends payable338 342 Income taxes payable152 48 Liabilities held for sale40 71 Total current liabilities2,042 2,154 Noncurrent Liabilities: Long-term debt7,765 7,754 Deferred income taxes676 668 Noncurrent income taxes payable413 462 Other liabilities1,009 1,000 Total noncurrent liabilities9,863 9,884 Stockholders’ Equity: Common stock6 6 Additional paid-in-capital1,317 1,304 Retained earnings22,612 22,403 Common stock held in treasury(19,669) (18,982) Accumulated other comprehensive income (loss)(1,909) (1,705) Noncontrolling interest1 4 Total stockholders’ equity2,358 3,030 $14,263 $15,068 ILLINOIS TOOL WORKS INC. and SUBSIDIARIES SEGMENT DATA (UNAUDITED)Three Months Ended June 30, 2020 Dollars in millionsTotal RevenueOperating IncomeOperating Margin Automotive OEM$361 $(28) (7.8)% Food Equipment336 31 9.2% Test & Measurement and Electronics455 117 25.7% Welding298 64 21.6% Polymers & Fluids354 82 23.1% Construction Products376 90 23.7% Specialty Products387 98 25.4% Intersegment(3) — —% Total Segments2,564 454 17.7% Unallocated— (5) —% Total Company$2,564 $449 17.5% Six Months Ended June 30, 2020 Dollars in millionsTotal RevenueOperating IncomeOperating Margin Automotive OEM$1,057 $117 11.1% Food Equipment819 148 18.1% Test & Measurement and Electronics940 238 25.4% Welding670 173 25.8% Polymers & Fluids747 175 23.4% Construction Products766 181 23.6% Specialty Products801 207 25.9% Intersegment(8) — —% Total Segments5,792 1,239 21.4% Unallocated— (29) —% Total Company$5,792 $1,210 20.9% ILLINOIS TOOL WORKS INC. and SUBSIDIARIES SEGMENT DATA (UNAUDITED)Q2 2020 vs. Q2 2019 Favorable/(Unfavorable) Operating RevenueAutomotive OEMFood EquipmentTest & Measurement and ElectronicsWeldingPolymers & FluidsConstruction ProductsSpecialty ProductsTotal ITW Organic(52.6)%(37.6)%(10.6)%(24.9)%(14.4)%(9.1)%(16.1)%(26.5)% Acquisitions/ Divestitures—%—%(3.0)%(3.9)%—%—%(0.8)%(1.0)% Translation(1.5)%(1.0)%(1.1)%(0.6)%(2.8)%(2.3)%(1.3)%(1.5)% Operating Revenue(54.1)%(38.6)%(14.7)%(29.4)%(17.2)%(11.4)%(18.2)%(29.0)% Q2 2020 vs. Q2 2019 Favorable/(Unfavorable) Change in Operating MarginAutomotive OEMFood EquipmentTest & Measurement and ElectronicsWeldingPolymers & FluidsConstruction ProductsSpecialty ProductsTotal ITW Operating Leverage(1880) bps(1300) bps(300) bps(520) bps(380) bps(200) bps(380) bps(750) bps Changes in Variable Margin & OH Costs(1210) bps(470) bps380 bps(330) bps320 bps40 bps160 bps— Total Organic (3090) bps (1770) bps 80 bps (850) bps (60) bps (160) bps (220) bps (750) bps Acquisitions/ Divestitures——40 bps60 bps——50 bps10 bps Restructuring/ Other100 bps130 bps—70 bps90 bps30 bps100 bps80 bps Total Operating Margin Change (2990) bps (1640) bps 120 bps (720) bps 30 bps (130) bps (70) bps (660) bps Total Operating Margin % *(7.8)%9.2%25.7%21.6%23.1%23.7%25.4%17.5% * Includes unfavorable operating margin impact of amortization expense from acquisition-related intangible assets 110 bps 100 bps 180 bps 20 bps 390 bps 30 bps 100 bps 140 bps ** ** Amortization expense from acquisition-related intangible assets had an unfavorable impact of ($0.08) on GAAP earnings per share for the second quarter of 2020. ILLINOIS TOOL WORKS INC. and SUBSIDIARIES SEGMENT DATA (UNAUDITED)1H 2020 vs. 1H 2019 Favorable/(Unfavorable) Operating RevenueAutomotive OEMFood EquipmentTest & Measurement and ElectronicsWeldingPolymers & FluidsConstruction ProductsSpecialty ProductsTotal ITW Organic(32.0)%(22.0)%(7.0)%(16.9)%(8.9)%(4.6)%(12.4)%(16.6)% Acquisitions/ Divestitures—%—%(3.1)%(3.7)%—%—%(1.0)%(1.0)% Translation(1.7)%(1.2)%(1.0)%(0.5)%(2.5)%(2.5)%(1.2)%(1.5)% Operating Revenue(33.7)%(23.2)%(11.1)%(21.1)%(11.4)%(7.1)%(14.6)%(19.1)% 1H 2020 vs. 1H 2019 Favorable/(Unfavorable) Change in Operating MarginAutomotive OEMFood EquipmentTest & Measurement and ElectronicsWeldingPolymers & FluidsConstruction ProductsSpecialty ProductsTotal ITW Operating Leverage(840) bps(630) bps(200) bps(330) bps(230) bps(90) bps(270) bps(430) bps Changes in Variable Margin & OH Costs(370) bps(180) bps250 bps(80) bps280 bps20 bps90 bps30 bps Total Organic (1210) bps (810) bps 50 bps (410) bps 50 bps (70) bps (180) bps (400) bps Acquisitions/ Divestitures——50 bps70 bps——60 bps20 bps Restructuring/ Other180 bps90 bps10 bps70 bps80 bps90 bps80 bps80 bps Total Operating Margin Change (1030) bps (720) bps 110 bps (270) bps 130 bps 20 bps (40) bps (300) bps Total Operating Margin % *11.1%18.1%25.4%25.8%23.4%23.6%25.9%20.9% * Includes unfavorable operating margin impact of amortization expense from acquisition-related intangible assets 70 bps 80 bps 170 bps 20 bps 370 bps 30 bps 90 bps 130 bps ** ** Amortization expense from acquisition-related intangible assets had an unfavorable impact of ($0.17) on GAAP earnings per share for the first half of 2020. ILLINOIS TOOL WORKS INC. and SUBSIDIARIES GAAP to NON-GAAP RECONCILIATIONS (UNAUDITED)AFTER-TAX RETURN ON AVERAGE INVESTED CAPITAL (UNAUDITED) Three Months Ended Six Months Ended June 30, June 30, Dollars in millions2020 2019 2020 2019 Operating income$449 $871 $1,210 $1,710 Tax rate21.3 % 24.5 % 22.4 % 24.5 % Income taxes(96) (213) (271) (418) Operating income after taxes$353 $658 $939 $1,292 Invested capital: Trade receivables$2,156 $2,629 $2,156 $2,629 Inventories1,167 1,256 1,167 1,256 Net assets held for sale181 346 181 346 Net plant and equipment1,711 1,717 1,711 1,717 Goodwill and intangible assets5,244 5,431 5,244 5,431 Accounts payable and accrued expenses(1,508) (1,719) (1,508) (1,719) Other, net(636) (433) (636) (433) Total invested capital$8,315 $9,227 $8,315 $9,227 Average invested capital$8,431 $9,206 $8,557 $9,182 Return on average invested capital16.8 % 28.6 % 22.0 % 28.1 % FREE CASH FLOW (UNAUDITED) Three Months Ended Six Months Ended June 30, June 30, Dollars in millions2020 2019 2020 2019 Net cash provided by operating activities$737 $685 $1,351 $1,301 Less: Additions to plant and equipment(56) (77) (116) (154) Free cash flow$681 $608 $1,235 $1,147 Net income$319 $623 $885 $1,220 Free cash flow to net income conversion rate213 % 98 % 140 % 94 % Media ContactInvestor Relations Illinois Tool WorksIllinois Tool Works Trisha KnychKaren Fletcher Tel: 224.661.7566Tel: 224.661.7433 firstname.lastname@example.org email@example.com
Illinois Tool Works (NYSE: ITW) unveils its next round of earnings this Friday, July 31. Get prepared with Benzinga's ultimate preview for Illinois Tool Works's Q2 earnings.Earnings and Revenue Wall Street analysts see Illinois Tool Works reporting earnings of $0.70 per share on revenue of $2.33 billion. In the same quarter last year, Illinois Tool Works reported EPS of $2.00 on revenue of $3.61 billion. If the company were to report inline earnings when it publishes results Friday, quarterly profit would be down 65.0%. Sales would be down 29.18% on a year-over-year basis. Here's how the company's reported EPS has stacked up against analyst estimates in the past:Quarter Q1 2020 Q4 2020 Q3 2019 Q2 2019 EPS Estimate 1.71 1.85 1.94 1.97 EPS Actual 1.77 1.88 2.04 2 Revenue Estimate 3.29 B 3.46 B 3.54 B 3.73 B Revenue Actual 3.23 B 3.47 B 3.48 B 3.61 B Stock Performance Over the last 52-week period, shares are up 22.21%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.View more earnings on ITWDon't be surprised to see the stock move on comments made during its conference call. Illinois Tool Works is scheduled to hold the call at 11:00:00 ET and can be accessed here: https://event.on24.com/eventRegistration/EventLobbyServlet?target=reg20.jsp&referrer=https%3A%2F%2Fwww.google.com%2Furl%3Fq%3Dhttps%253A%252F%252Fevent.on24.com%252Fwcc%252Fr%252F2395563%252FE110C2D9A650E98DC0D507D08D018B16%26sa%3DD%26ust%3D1594736039520000%26usg%3DAOvVaw0GPQ5ZOsg2wTDOYImUm9XD&eventid=2395563&sessionid=1&key=E110C2D9A650E98DC0D507D08D018B16®Tag=&sourcepage=registerSee more from Benzinga * Benzinga's Top Upgrades, Downgrades For July 13, 2020(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
With the Industrial Products Sector's second-quarter earnings anticipated to bear the brunt of weak demand amid the COVID-19 pandemic, let's see how some of the stocks are likely to fare in their upcoming releases.
Illinois Tool (ITW) is seeing favorable earnings estimate revision activity and has a positive Zacks Earnings ESP heading into earnings season.
Illinois Tool (ITW) Q2 results are likely to reflect the pandemic impact, especially on automotive OEM businesses. Diversified businesses, enterprise strategy and cost-cutting might have aided.
Illinois Tool Works (ITW) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Illinois Tool Works (ITW) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Industrial product stocks are expected to reflect gains from the pandemic-led product demand, spur in e-commerce and cost-saving measures. We present five stocks poised for an earnings beat in Q2.
Dividend Aristocrats sometimes fall into the boring and overlooked category of companies because they consistently make money and return a share of it to their investors. To qualify for inclusion in the very select Dividend Aristocrat club, a company must be in the S&P 500, pay a dividend, and raise its yearly base dividend rate for at least 25 consecutive years. Once you find a good Dividend Aristocrat for your portfolio, it's likely you'll want to keep it there for years.
GLENVIEW, Ill., July 22, 2020 (GLOBE NEWSWIRE) -- Illinois Tool Works Inc. (NYSE: ITW) today announced its participation in the Jefferies Virtual Industrials Conference on Wednesday, August 5, 2020. Senior Vice President & Chief Financial Officer, Michael Larsen, will present at the conference from 3:00 p.m. – 3:30 p.m. (EDT). The event will be webcast live, and a replay will be available, on ITW’s Investor Relations website at http://investor.itw.com. About Illinois Tool Works ITW (NYSE: ITW) is a Fortune 200 global multi-industrial manufacturing leader with revenues totaling $14.1 billion in 2019. The company’s seven industry-leading segments leverage the unique ITW Business Model to drive solid growth with best-in-class margins and returns in markets where highly innovative, customer-focused solutions are required. ITW’s approximately 45,000 dedicated colleagues around the world thrive in the company’s decentralized and entrepreneurial culture. www.itw.comMedia ContactInvestor Relations Illinois Tool WorksIllinois Tool Works Trisha KnychKaren Fletcher Tel: 224.661.7566Tel: 224.661.7433 firstname.lastname@example.org@itw.com
A Bernstein report observes that the yield spread between U.S. stocks and bonds is the widest it has been since 1955—and “perhaps the most obvious reason why the income trade may now be in equities.”
GLENVIEW, Ill., July 15, 2020 -- Illinois Tool Works Inc. (NYSE: ITW) will issue its second quarter 2020 results on Friday, July 31, 2020 at 7:00 a.m. CDT. Following the.
Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds' and successful investors' positions as of the end of the first quarter. You can find articles about an individual hedge fund's trades on numerous financial […]
If you are looking for the best ideas for your portfolio you may want to consider some of Amana Mutual Funds top stock picks. Amana Mutual Funds, an investment management firm, is bullish on Illinois Tool Works Inc (NYSE:ITW) stock. In its Q4 2019 investor letter – you can download a copy here – the […]
Here are three top industrial stocks capable of overcoming setbacks from COVID-19, and growing during an economic recovery. United Parcel Service (NYSE: UPS) is one of the largest and most well-known transportation stocks. The company's global supply chain of integrated services by land, sea, and sky also makes UPS one of the top logistics companies.
Illinois Tool Works (ITW) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F […]
Illinois Tool (ITW) suffers from the adverse impacts of the pandemic and expects sales to fall 30-40% in the second quarter. Forex woes and high debts are other concerns.
The recent results from multi-industry manufacturer Illinois Tool Works (NYSE: ITW) served to highlight many of the difficult decisions investors are facing right now. The automotive market remains the single biggest earnings generator for the company. Investors are looking to avoid companies with heavy exposure to industries that are likely to suffer in the near term, or that might be structurally challenged in the long term due to the COVID-19 pandemic.