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Illinois Tool Works Inc. ITW is scheduled to release first-quarter 2025 results on April 30, before market open.
The Zacks Consensus Estimate for first-quarter earnings has increased a penny in the past 60 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters. The average surprise was 3.6%.
The consensus estimate for revenues is pegged at $3.84 billion, down 3.3% from the year-ago quarter’s figure. The consensus estimate for adjusted earnings is pinned at $2.34 per share, indicating a 4.1% decrease from the year-ago quarter’s number. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Let’s see how things have shaped up for Illinois Tool this earnings season.
Factors to Note Ahead of ITW’s Results
Recovery in the MTS Test & Simulation business and the consumable semiconductor end market is likely to have boosted the performance of Illinois Tool’s Test & Measurement and Electronics segment. Growth in the institutional end markets in North America, along with higher demand in the European warewash and cooking end markets, is likely to have driven ITW’s Food Equipment segment. ITW’s Polymers & Fluids segment’s performance is expected to have benefited from higher demand in Europe, arising from increasing demand in the life sciences end market.
Strong momentum in the ground support equipment, appliance, consumer packaging and strength films businesses is likely to have aided the Specialty Products segment’s performance. We expect the segment’s revenues to be $445.6 million, indicating a 1.3% increase from the year-ago number.
Also, cost management and enterprise initiatives are anticipated to have aided ITW’s margin performance.
However, a decrease in North American auto build rate, due to unfavorable customer mix and product line simplification activities, is likely to have weighed on ITW’s Automotive OEM segment. We expect the segment’s revenues to decrease 5.3% year over year to $772.8 million in the first quarter.
Also, the Welding segment is expected to have put up a weak show due to softness in the consumables and equipment business because of declining demand in the industrial and commercial end markets. We expect the segment’s revenues to decrease 2.3% year over year to $465.1 million in the first quarter.
ITW has considerable exposure to overseas markets. Given the company’s substantial international operations, foreign currency headwinds are likely to have marred its margins and profitability.
We expect the company’s total revenues to be $3.9 billion for the first quarter, indicating a decrease of 2.6% year over year. Adjusted earnings are expected to be $2.37 per share, indicating a 13.5% decline from the year-ago quarter’s number.