Illinois Tool Works (NYSE:ITW) Updates FY 2025 Earnings Guidance

Key Points

• Illinois Tool Works has updated its FY 2025 earnings guidance, projecting earnings per share between $10.400 and $10.500, slightly above the consensus estimate of $10.390.
• The company also provided revenue guidance of $16.1 billion to $16.4 billion, aligning with the consensus revenue estimate of $16.1 billion.
• Illinois Tool Works recently raised its quarterly dividend from $1.50 to $1.61, equating to an annualized dividend yield of 2.5%.

Illinois Tool Works (NYSE:ITW - Get Free Report) issued an update on its FY 2025 earnings guidance on Friday morning. The company provided earnings per share guidance of 10.400-10.500 for the period, compared to the consensus earnings per share estimate of 10.390. The company issued revenue guidance of $16.1 billion-$16.4 billion, compared to the consensus revenue estimate of $16.1 billion.

Illinois Tool Works Stock Up 1.8%

Shares of ITW stock opened at $257.49 on Friday. The company has a market capitalization of $75.06 billion, a price-to-earnings ratio of 22.57, a P/E/G ratio of 5.60 and a beta of 1.10. Illinois Tool Works has a 12-month low of $214.66 and a 12-month high of $279.13. The firm has a fifty day moving average of $259.61 and a 200-day moving average of $251.43. The company has a quick ratio of 1.15, a current ratio of 1.59 and a debt-to-equity ratio of 2.40.

Illinois Tool Works (NYSE:ITW - Get Free Report) last released its earnings results on Friday, October 24th. The industrial products company reported $2.81 earnings per share for the quarter, beating analysts' consensus estimates of $2.69 by $0.12. Illinois Tool Works had a net margin of 21.31% and a return on equity of 90.89%. During the same period in the prior year, the company earned $3.91 earnings per share. Illinois Tool Works has set its FY 2025 guidance at 10.400-10.500 EPS. As a group, equities research analysts predict that Illinois Tool Works will post 10.39 earnings per share for the current fiscal year.

Illinois Tool Works Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, October 10th. Investors of record on Tuesday, September 30th were given a $1.61 dividend. This represents a $6.44 dividend on an annualized basis and a yield of 2.5%. This is an increase from Illinois Tool Works's previous quarterly dividend of $1.50. The ex-dividend date of this dividend was Tuesday, September 30th. Illinois Tool Works's payout ratio is 56.44%.

Analyst Upgrades and Downgrades

ITW has been the subject of a number of analyst reports. Evercore ISI set a $265.00 target price on shares of Illinois Tool Works and gave the company an "underperform" rating in a research report on Tuesday, August 19th. UBS Group raised their target price on shares of Illinois Tool Works from $243.00 to $255.00 and gave the company a "neutral" rating in a research report on Thursday, July 31st. Barclays raised their target price on shares of Illinois Tool Works from $240.00 to $243.00 and gave the company an "equal weight" rating in a research report on Monday, August 4th. Deutsche Bank Aktiengesellschaft increased their price target on shares of Illinois Tool Works from $265.00 to $268.00 and gave the company a "hold" rating in a research note on Thursday, October 2nd. Finally, Wells Fargo & Company increased their price target on shares of Illinois Tool Works from $235.00 to $250.00 and gave the company an "underweight" rating in a research note on Thursday, July 31st. Two analysts have rated the stock with a Buy rating, eight have issued a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Reduce" and a consensus target price of $262.83.

Insider Activity

In other news, CAO Randall J. Scheuneman sold 6,802 shares of the firm's stock in a transaction dated Thursday, September 11th. The shares were sold at an average price of $265.08, for a total transaction of $1,803,074.16. Following the completion of the sale, the chief accounting officer owned 10,314 shares in the company, valued at approximately $2,734,035.12. This trade represents a 39.74% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Corporate insiders own 0.88% of the company's stock.

Institutional Trading of Illinois Tool Works

A number of hedge funds have recently modified their holdings of the stock. Ameriprise Financial Inc. lifted its stake in shares of Illinois Tool Works by 1.1% during the 2nd quarter. Ameriprise Financial Inc. now owns 2,554,468 shares of the industrial products company's stock worth $631,685,000 after buying an additional 28,762 shares during the last quarter. Treasurer of the State of North Carolina lifted its stake in shares of Illinois Tool Works by 2.2% during the 2nd quarter. Treasurer of the State of North Carolina now owns 136,884 shares of the industrial products company's stock worth $33,845,000 after buying an additional 2,890 shares during the last quarter. Sei Investments Co. lifted its stake in shares of Illinois Tool Works by 22.0% during the 2nd quarter. Sei Investments Co. now owns 106,784 shares of the industrial products company's stock worth $26,401,000 after buying an additional 19,248 shares during the last quarter. Lazard Asset Management LLC lifted its stake in shares of Illinois Tool Works by 1,278.4% during the 2nd quarter. Lazard Asset Management LLC now owns 103,639 shares of the industrial products company's stock worth $25,624,000 after buying an additional 96,120 shares during the last quarter. Finally, State of Tennessee Department of Treasury lifted its stake in shares of Illinois Tool Works by 21.6% during the 2nd quarter. State of Tennessee Department of Treasury now owns 89,962 shares of the industrial products company's stock worth $22,243,000 after buying an additional 15,953 shares during the last quarter. Institutional investors and hedge funds own 79.77% of the company's stock.

About Illinois Tool Works

Illinois Tool Works Inc manufactures and sells industrial products and equipment in the United States and internationally. It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products.

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