Zacks Research Brokers Lower Earnings Estimates for ITW

Key Points

• Zacks Research lowered Illinois Tool Works’ Q2 2027 EPS estimate to $3.03 from $3.04, while forecasting full-year 2028 EPS of $13.20.
• Analyst sentiment remains cautious: ITW has a consensus “Reduce” rating, with one Buy, seven Hold and five Sell ratings and an average price target of $273.42.
• ITW reported quarterly EPS of $2.84, exceeding estimates, and raised its quarterly dividend to $1.72, equivalent to an annualized $6.88 and a 2.5% yield.

Illinois Tool Works Inc. (NYSE:ITW - Free Report) - Investment analysts at Zacks Research lowered their Q2 2027 earnings per share (EPS) estimates for Illinois Tool Works in a research report issued to clients and investors on Friday, October 23rd. Zacks Research analyst Team now anticipates that the industrial products company will earn $3.03 per share for the quarter, down from their prior estimate of $3.04. The consensus estimate for Illinois Tool Works' current full-year earnings is $11.42 per share. Zacks Research also issued estimates for Illinois Tool Works' Q1 2028 earnings at $2.97 EPS, Q2 2028 earnings at $3.28 EPS, Q3 2028 earnings at $3.48 EPS and FY2028 earnings at $13.20 EPS.

A number of other brokerages have also weighed in on ITW. UBS Group set a $277.00 price target on shares of Illinois Tool Works in a research note on Friday, October 9th. Deutsche Bank Aktiengesellschaft decreased their target price on Illinois Tool Works from $287.00 to $281.00 and set a "hold" rating on the stock in a research report on Wednesday, September 30th. JPMorgan Chase & Co. lowered Illinois Tool Works from an "overweight" rating to a "neutral" rating and lowered their price target for the stock from $350.00 to $270.00 in a research note on Friday, October 9th. Wolfe Research reiterated an "underperform" rating and set a $286.00 price target on shares of Illinois Tool Works in a research report on Thursday, July 9th. Finally, Weiss Ratings downgraded Illinois Tool Works from a "buy (b)" rating to a "buy (b-)" rating in a research note on Tuesday, October 13th. One research analyst has rated the stock with a Buy rating, seven have issued a Hold rating and five have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Reduce" and an average price target of $273.42.

Illinois Tool Works Price Performance

Shares of NYSE ITW opened at $275.80 on Monday. The firm has a market cap of $78.55 billion, a PE ratio of 25.00, a PEG ratio of 2.98 and a beta of 0.96. The firm has a fifty day moving average of $271.82 and a 200 day moving average of $269.04. The company has a debt-to-equity ratio of 2.26, a quick ratio of 0.81 and a current ratio of 1.11. Illinois Tool Works has a one year low of $238.82 and a one year high of $303.15.

Illinois Tool Works (NYSE:ITW - Get Free Report) last announced its earnings results on Tuesday, July 28th. The industrial products company reported $2.84 earnings per share for the quarter, topping the consensus estimate of $2.80 by $0.04. Illinois Tool Works had a return on equity of 101.72% and a net margin of 19.39%. The business had revenue of $4.30 billion during the quarter, compared to the consensus estimate of $4.19 billion. During the same period in the prior year, the company posted $2.58 EPS. The business's quarterly revenue was up 6.1% on a year-over-year basis. Illinois Tool Works has set its FY 2026 guidance at 11.350-11.550 EPS.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in ITW. BlackRock Inc. acquired a new position in shares of Illinois Tool Works in the 2nd quarter valued at $6,296,349,000. State Street Corp lifted its position in Illinois Tool Works by 1.0% in the second quarter. State Street Corp now owns 12,788,570 shares of the industrial products company's stock valued at $3,479,219,000 after buying an additional 128,089 shares during the last quarter. Bank of America Corp DE lifted its position in Illinois Tool Works by 2.5% in the first quarter. Bank of America Corp DE now owns 3,005,659 shares of the industrial products company's stock valued at $782,343,000 after buying an additional 72,951 shares during the last quarter. Bank of New York Mellon Corp acquired a new stake in shares of Illinois Tool Works during the second quarter valued at about $603,166,000. Finally, Dimensional Fund Advisors LP raised its stake in shares of Illinois Tool Works by 3.0% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,045,009 shares of the industrial products company's stock valued at $532,261,000 after acquiring an additional 60,009 shares during the period. 79.77% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In related news, Director Ernest Santi sold 41,431 shares of the firm's stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $287.09, for a total transaction of $11,894,425.79. Following the completion of the sale, the director directly owned 266,288 shares in the company, valued at approximately $76,448,621.92. This trade represents a 13.46% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CAO Matteo Pigozzo sold 277 shares of the business's stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $289.22, for a total transaction of $80,113.94. Following the completion of the transaction, the chief accounting officer owned 3,394 shares in the company, valued at $981,612.68. The trade was a 7.55% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.83% of the stock is currently owned by company insiders.

Illinois Tool Works Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, October 9th. Investors of record on Wednesday, September 30th were issued a $1.72 dividend. This is an increase from Illinois Tool Works's previous quarterly dividend of $1.61. This represents a $6.88 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date of this dividend was Wednesday, September 30th. Illinois Tool Works's payout ratio is currently 62.38%.

About Illinois Tool Works

Illinois Tool Works Inc NYSE: ITW is a diversified industrial manufacturer that develops and produces specialized equipment, components, consumables and systems for customers in a range of industries. Founded in 1912 and headquartered in Glenview, Illinois, the company serves markets worldwide through a portfolio of highly engineered businesses.

ITW's operations include food equipment, automotive components, welding products, test and measurement equipment, electronics materials, polymers and fluids, construction products, and specialty products.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.