Illinois Tool Works Earnings: What To Look For From ITW

Manufacturing company Illinois Tool Works (NYSE:ITW) will be announcing earnings results tomorrow before the bell. Here's what to expect.

Illinois Tool Works missed analysts' revenue expectations by 1.4% last quarter, reporting revenues of $3.97 billion, down 1.1% year on year. It was a mixed quarter for the company, with a solid beat of analysts' earnings estimates but a miss of analysts' organic revenue estimates.

Is Illinois Tool Works a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Illinois Tool Works's revenue to be flat year on year at $4.08 billion, slowing from the 1.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.47 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Illinois Tool Works has missed Wall Street's revenue estimates four times over the last two years.

Looking at Illinois Tool Works's peers in the general industrial machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Dover delivered year-on-year revenue growth of 3.7%, beating analysts' expectations by 1.4%, and Honeywell reported revenues up 4.7%, topping estimates by 1.7%. Dover traded up 5.1% following the results while Honeywell was down 5.1%.

Read our full analysis of Dover's results here and Honeywell's results here.

There has been positive sentiment among investors in the general industrial machinery segment, with share prices up 10.9% on average over the last month. Illinois Tool Works is up 6.4% during the same time and is heading into earnings with an average analyst price target of $248.5 (compared to the current share price of $248.28).

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