We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Illinois Tool (ITW) to Report Q4 Earnings: Is a Beat in Store?
Read MoreHide Full Article
Illinois Tool Works Inc. (ITW - Free Report) is scheduled to release fourth-quarter 2020 results on Feb 5, before market open.
The company delivered better-than-expected results in the last four quarters, the earnings surprise being 21.76%, on average. In the last reported quarter, its earnings of $1.83 surpassed the Zacks Consensus Estimate of $1.45 by 26.21%.
In the past three months, shares of the industrial products and equipment manufacturer have lost 2.2% compared with the industry’s growth of 9.5%.
Let us delve deeper.
Key Factors & Estimates for Q4
Illinois Tool’s fourth-quarter 2020 results are expected to reflect gains from solid product offerings, a diversified business structure and an efficient management team. Also, its enterprise strategy — including Business Structure Simplification, Portfolio Management and Strategic Sourcing — are anticipated to have been a boon. Notably, enterprise strategy boosted the company’s operating margin by 100 basis points (bps) in the second quarter and by 120 bps in the third quarter.
In addition, the impacts of the company’s cost-management actions and healthy liquidity position are expected to get reflected in the quarter’s results. On the broader aspect, improvement in manufacturing activities in the country is expected to have benefitted players like Illinois Tool.
Key indicators supporting this belief are manufacturing output, which increased 11.2% in the fourth quarter of 2020, and ISM Purchasing Managers' Index, which grew from 55.4% in September to 60.7% in December.
On the flip side, Illinois Tool’s activities are exposed to the challenges related to the pandemic. Also, the company expects seasonality, typical of the fourth quarter, and higher tax rates to hurt results. Lower shipping days are also expected to have ailed.
The Zack Consensus Estimate for the company’s fourth-quarter earnings is pegged at $1.77 per share, indicating a fall of 5.9% from the year-ago reported figure and a 3.3% dip sequentially. Also, the consensus estimate for revenues of $3,305 million suggests a 4.7% decrease from the year-ago quarter’s reported number and a 0.1% decline from the last reported quarter’s figure.
On a segmental basis, a brief discussion on estimates for the top three revenue-producing segments — based on third-quarter 2020 results — is provided below.
The Zacks Consensus Estimate for Automotive OEM’s revenues is pegged at $710 million for the fourth quarter, suggesting a 2.1% fall from the year-ago quarter’s reported figure and a 0.6% decline sequentially.
The consensus estimate for the Test & Measurement and Electronics segment’s revenues stands at $489 million, suggesting an 11.4% decline from the year-ago reported figure and unchanged from the previous quarter.
Further, the consensus estimate for the Construction Products segment’s revenues stands at $404 million for the fourth quarter, suggesting a 5.2% increase from the year-ago reported figure and an 11.4% fall from the previous quarter.
Earnings Whispers
Our proven model suggests an earnings beat for Illinois Tool this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is exactly the case with Illinois Tool as is shown below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Illinois Tool has an Earnings ESP of +0.71%, with the Most Accurate Estimate of $1.78 is above the Zacks Consensus Estimate of $1.77.
Illinois Tool Works Inc. Price, Consensus and EPS Surprise
Zacks Rank: The company currently carries a Zacks Rank #3.
Other Stocks to Consider
Here are some other companies in the industry that you may want to consider as according to our model these too have the right combination of elements to post an earnings beat this quarter.
Rexnord Corporation currently has an Earnings ESP of +5.05% and a Zacks Rank #3.
The Middleby Corporation (MIDD - Free Report) presently has an Earnings ESP of +8.67% and a Zacks Rank #2.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Bigstock
Illinois Tool (ITW) to Report Q4 Earnings: Is a Beat in Store?
Illinois Tool Works Inc. (ITW - Free Report) is scheduled to release fourth-quarter 2020 results on Feb 5, before market open.
The company delivered better-than-expected results in the last four quarters, the earnings surprise being 21.76%, on average. In the last reported quarter, its earnings of $1.83 surpassed the Zacks Consensus Estimate of $1.45 by 26.21%.
In the past three months, shares of the industrial products and equipment manufacturer have lost 2.2% compared with the industry’s growth of 9.5%.
Let us delve deeper.
Key Factors & Estimates for Q4
Illinois Tool’s fourth-quarter 2020 results are expected to reflect gains from solid product offerings, a diversified business structure and an efficient management team. Also, its enterprise strategy — including Business Structure Simplification, Portfolio Management and Strategic Sourcing — are anticipated to have been a boon. Notably, enterprise strategy boosted the company’s operating margin by 100 basis points (bps) in the second quarter and by 120 bps in the third quarter.
In addition, the impacts of the company’s cost-management actions and healthy liquidity position are expected to get reflected in the quarter’s results. On the broader aspect, improvement in manufacturing activities in the country is expected to have benefitted players like Illinois Tool.
Key indicators supporting this belief are manufacturing output, which increased 11.2% in the fourth quarter of 2020, and ISM Purchasing Managers' Index, which grew from 55.4% in September to 60.7% in December.
On the flip side, Illinois Tool’s activities are exposed to the challenges related to the pandemic. Also, the company expects seasonality, typical of the fourth quarter, and higher tax rates to hurt results. Lower shipping days are also expected to have ailed.
The Zack Consensus Estimate for the company’s fourth-quarter earnings is pegged at $1.77 per share, indicating a fall of 5.9% from the year-ago reported figure and a 3.3% dip sequentially. Also, the consensus estimate for revenues of $3,305 million suggests a 4.7% decrease from the year-ago quarter’s reported number and a 0.1% decline from the last reported quarter’s figure.
On a segmental basis, a brief discussion on estimates for the top three revenue-producing segments — based on third-quarter 2020 results — is provided below.
The Zacks Consensus Estimate for Automotive OEM’s revenues is pegged at $710 million for the fourth quarter, suggesting a 2.1% fall from the year-ago quarter’s reported figure and a 0.6% decline sequentially.
The consensus estimate for the Test & Measurement and Electronics segment’s revenues stands at $489 million, suggesting an 11.4% decline from the year-ago reported figure and unchanged from the previous quarter.
Further, the consensus estimate for the Construction Products segment’s revenues stands at $404 million for the fourth quarter, suggesting a 5.2% increase from the year-ago reported figure and an 11.4% fall from the previous quarter.
Earnings Whispers
Our proven model suggests an earnings beat for Illinois Tool this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is exactly the case with Illinois Tool as is shown below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Illinois Tool has an Earnings ESP of +0.71%, with the Most Accurate Estimate of $1.78 is above the Zacks Consensus Estimate of $1.77.
Illinois Tool Works Inc. Price, Consensus and EPS Surprise
Illinois Tool Works Inc. price-consensus-eps-surprise-chart | Illinois Tool Works Inc. Quote
Zacks Rank: The company currently carries a Zacks Rank #3.
Other Stocks to Consider
Here are some other companies in the industry that you may want to consider as according to our model these too have the right combination of elements to post an earnings beat this quarter.
AGCO Corporation (AGCO - Free Report) has an Earnings ESP of +3.34% and it presently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Rexnord Corporation currently has an Earnings ESP of +5.05% and a Zacks Rank #3.
The Middleby Corporation (MIDD - Free Report) presently has an Earnings ESP of +8.67% and a Zacks Rank #2.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>