Zacks Research Has Negative Estimate for ITW Q3 Earnings

Key Points

• Zacks Research cut its Q3 2027 EPS forecast for Illinois Tool Works to $3.17 from $3.27. It also projects $12.21 EPS for FY2027 and $13.08 for FY2028.
• Analyst sentiment is cautious: MarketBeat reports a consensus “Reduce” rating and an average price target of $276.33, with seven Hold and five Sell ratings among the analysts cited.
• In its latest reported quarter, ITW earned $3.00 per share, beating the $2.97 estimate, while revenue of $4.24 billion fell short of expectations; revenue rose 4.5% year over year.

Illinois Tool Works Inc. (NYSE:ITW - Free Report) - Equities research analysts at Zacks Research lowered their Q3 2027 earnings per share (EPS) estimates for shares of Illinois Tool Works in a research note issued to investors on Tuesday, November 10th. Zacks Research analyst Team now expects that the industrial products company will earn $3.17 per share for the quarter, down from their previous forecast of $3.27. The consensus estimate for Illinois Tool Works' current full-year earnings is $11.49 per share. Zacks Research also issued estimates for Illinois Tool Works' Q4 2027 earnings at $3.26 EPS, FY2027 earnings at $12.21 EPS, Q2 2028 earnings at $3.26 EPS, Q3 2028 earnings at $3.39 EPS and FY2028 earnings at $13.08 EPS.

A number of other research analysts also recently commented on ITW. JPMorgan Chase & Co. downgraded shares of Illinois Tool Works from an "overweight" rating to a "neutral" rating and lowered their price target for the company from $350.00 to $270.00 in a report on Friday, October 9th. Robert W. Baird boosted their price objective on Illinois Tool Works from $278.00 to $297.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 29th. The Goldman Sachs Group restated a "sell" rating and set a $270.00 price objective on shares of Illinois Tool Works in a research report on Tuesday, October 27th. Weiss Ratings raised Illinois Tool Works from a "buy (b-)" rating to a "buy (b)" rating in a research note on Wednesday, October 28th. Finally, Truist Financial reiterated a "hold" rating and issued a $293.00 target price (down from $297.00) on shares of Illinois Tool Works in a report on Wednesday, October 28th. One investment analyst has rated the stock with a Buy rating, seven have issued a Hold rating and five have given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Reduce" and an average target price of $276.33.

Illinois Tool Works Stock Performance

Illinois Tool Works stock opened at $288.01 on Wednesday. The company's 50-day moving average price is $272.22 and its 200-day moving average price is $271.68. Illinois Tool Works has a twelve month low of $238.82 and a twelve month high of $303.15. The company has a quick ratio of 0.94, a current ratio of 1.29 and a debt-to-equity ratio of 2.28. The company has a market cap of $81.85 billion, a PE ratio of 25.67, a price-to-earnings-growth ratio of 3.15 and a beta of 0.92.

Illinois Tool Works (NYSE:ITW - Get Free Report) last announced its quarterly earnings results on Tuesday, October 27th. The industrial products company reported $3.00 earnings per share for the quarter, topping the consensus estimate of $2.97 by $0.03. The company had revenue of $4.24 billion for the quarter, compared to analysts' expectations of $4.26 billion. Illinois Tool Works had a net margin of 19.39% and a return on equity of 103.35%. Illinois Tool Works's quarterly revenue was up 4.5% on a year-over-year basis. During the same quarter in the previous year, the business posted $2.81 earnings per share.

Institutional Investors Weigh In On Illinois Tool Works

Institutional investors and hedge funds have recently modified their holdings of the business. Edmond DE Rothschild Holding S.A. increased its stake in Illinois Tool Works by 7.0% in the third quarter. Edmond DE Rothschild Holding S.A. now owns 63,522 shares of the industrial products company's stock worth $16,343,000 after purchasing an additional 4,177 shares during the period. Private Wealth Asset Management LLC grew its holdings in shares of Illinois Tool Works by 477.1% in the third quarter. Private Wealth Asset Management LLC now owns 15,800 shares of the industrial products company's stock worth $4,439,000 after purchasing an additional 13,062 shares during the last quarter. Private Advisor Group LLC grew its holdings in shares of Illinois Tool Works by 111.8% in the third quarter. Private Advisor Group LLC now owns 42,865 shares of the industrial products company's stock worth $11,028,000 after purchasing an additional 22,627 shares during the last quarter. Ieq Capital LLC increased its stake in Illinois Tool Works by 192.2% in the 3rd quarter. Ieq Capital LLC now owns 43,193 shares of the industrial products company's stock worth $11,113,000 after buying an additional 28,411 shares during the period. Finally, Focus Advisor Solutions LLC increased its stake in Illinois Tool Works by 75.5% in the 3rd quarter. Focus Advisor Solutions LLC now owns 19,860 shares of the industrial products company's stock worth $5,110,000 after buying an additional 8,546 shares during the period. 79.77% of the stock is owned by institutional investors.

Insider Transactions at Illinois Tool Works

In related news, CAO Matteo C. Pigozzo sold 277 shares of the stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $289.22, for a total value of $80,113.94. Following the sale, the chief accounting officer directly owned 3,394 shares of the company's stock, valued at $981,612.68. This represents a 7.55% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Ernest Santi sold 60,000 shares of the firm's stock in a transaction dated Wednesday, November 4th. The stock was sold at an average price of $292.87, for a total transaction of $17,572,200.00. Following the completion of the sale, the director directly owned 266,333 shares of the company's stock, valued at approximately $78,000,945.71. The trade was a 18.39% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 101,708 shares of company stock valued at $29,546,740. 0.83% of the stock is owned by corporate insiders.

Illinois Tool Works Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, January 15th. Stockholders of record on Thursday, December 31st will be issued a $1.72 dividend. This represents a $6.88 annualized dividend and a dividend yield of 2.4%. The ex-dividend date is Thursday, December 31st. Illinois Tool Works's dividend payout ratio (DPR) is 61.32%.

Illinois Tool Works Company Profile

Illinois Tool Works Inc. NYSE: ITW is a diversified manufacturer serving industrial and commercial customers around the world. Founded in 1912, the company is known for its decentralized operating model and focus on specialized products and solutions. ITW's businesses make products and equipment for a range of markets, including automotive, food service, construction, welding, and testing and measurement. Its offerings include food-service equipment, welding systems and consumables, automotive components, construction products, polymers and fluids, and laboratory and electronics testing equipment.

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