Zacks Research Analysts Increase Earnings Estimates for ITW

Key Points

• Zacks Research raised its Q1 2028 EPS estimate for Illinois Tool Works to $3.03 from $3.02, and also projected Q2 2028 EPS at $3.37.
• ITW’s latest quarterly results beat expectations, with earnings of $2.66 per share versus $2.57 expected and revenue of $4.02 billion, up 4.6% year over year.
• Wall Street sentiment remains cautious, as the stock carries an average "Reduce" rating and a consensus price target of $271.92, even after several firms adjusted their targets.

Illinois Tool Works Inc. (NYSE:ITW - Free Report) - Investment analysts at Zacks Research increased their Q1 2028 EPS estimates for shares of Illinois Tool Works in a research report issued to clients and investors on Wednesday, July 1st. Zacks Research analyst Team now anticipates that the industrial products company will post earnings per share of $3.03 for the quarter, up from their previous estimate of $3.02. The consensus estimate for Illinois Tool Works' current full-year earnings is $11.37 per share. Zacks Research also issued estimates for Illinois Tool Works' Q2 2028 earnings at $3.37 EPS.

Several other research firms have also issued reports on ITW. Citigroup raised their price target on Illinois Tool Works from $284.00 to $287.00 and gave the stock a "neutral" rating in a research report on Monday, May 4th. Wells Fargo & Company boosted their price objective on Illinois Tool Works from $245.00 to $255.00 and gave the company an "underweight" rating in a research report on Monday, May 4th. Evercore dropped their price objective on Illinois Tool Works from $296.00 to $272.00 in a research note on Monday, May 11th. JPMorgan Chase & Co. cut their target price on shares of Illinois Tool Works from $303.00 to $295.00 and set an "overweight" rating on the stock in a report on Friday, May 1st. Finally, Barclays decreased their target price on shares of Illinois Tool Works from $275.00 to $250.00 and set an "underweight" rating on the stock in a research note on Wednesday, April 1st. 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's stock. According to data from MarketBeat.com, the company currently has an average rating of "Reduce" and an average price target of $271.92.

Illinois Tool Works Stock Down 0.6%

ITW opened at $268.93 on Thursday. Illinois Tool Works has a 12 month low of $238.82 and a 12 month high of $303.15. The company has a current ratio of 1.19, a quick ratio of 0.86 and a debt-to-equity ratio of 2.04. The business's 50-day moving average price is $257.95 and its 200-day moving average price is $264.49. The company has a market cap of $77.37 billion, a P/E ratio of 24.97, a P/E/G ratio of 4.65 and a beta of 0.99.

Illinois Tool Works (NYSE:ITW - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The industrial products company reported $2.66 earnings per share for the quarter, topping the consensus estimate of $2.57 by $0.09. Illinois Tool Works had a net margin of 19.32% and a return on equity of 97.36%. The business had revenue of $4.02 billion during the quarter, compared to the consensus estimate of $4.01 billion. During the same period in the previous year, the firm posted $2.38 earnings per share. The firm's revenue for the quarter was up 4.6% on a year-over-year basis. Illinois Tool Works has set its FY 2026 guidance at 11.100-11.500 EPS.

Illinois Tool Works Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, July 10th. Shareholders of record on Tuesday, June 30th will be issued a $1.61 dividend. The ex-dividend date is Tuesday, June 30th. This represents a $6.44 annualized dividend and a yield of 2.4%. Illinois Tool Works's dividend payout ratio (DPR) is 59.80%.

Insider Buying and Selling at Illinois Tool Works

In other Illinois Tool Works news, Director Jennifer F. Scanlon acquired 806 shares of the business's stock in a transaction dated Tuesday, June 2nd. The shares were purchased at an average cost of $247.99 per share, for a total transaction of $199,879.94. Following the transaction, the director owned 1,652 shares in the company, valued at $409,679.48. This represents a 95.27% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 0.83% of the company's stock.

Institutional Trading of Illinois Tool Works

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Brighton Jones LLC lifted its position in shares of Illinois Tool Works by 5.3% in the 4th quarter. Brighton Jones LLC now owns 5,519 shares of the industrial products company's stock worth $1,399,000 after purchasing an additional 277 shares during the period. Bison Wealth LLC raised its stake in Illinois Tool Works by 2.3% in the fourth quarter. Bison Wealth LLC now owns 3,555 shares of the industrial products company's stock worth $901,000 after buying an additional 81 shares in the last quarter. Sivia Capital Partners LLC lifted its holdings in Illinois Tool Works by 20.6% in the second quarter. Sivia Capital Partners LLC now owns 1,038 shares of the industrial products company's stock worth $257,000 after buying an additional 177 shares during the period. Sei Investments Co. boosted its position in 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 valued at $26,401,000 after acquiring an additional 19,248 shares in the last quarter. Finally, Treasurer of the State of North Carolina grew its holdings 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 acquiring an additional 2,890 shares during the period. Hedge funds and other institutional investors own 79.77% of the company's stock.

Illinois Tool Works Company Profile

Illinois Tool Works Inc (ITW) is a diversified industrial manufacturer that designs and produces a broad array of engineered products, consumables and related service solutions for industrial customers. Its offerings span engineered fastening systems, specialty components, industrial equipment, welding products, foodservice and packaging equipment, adhesives and polymer products, and test-and-measurement technologies. These products are used as critical inputs by customers across automotive, construction, electronics, foodservice, maintenance and other industrial end markets.

The company operates a decentralized business model in which independently managed businesses focus on niche product lines and close customer relationships.

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