Illinois Tool Works Earnings: Here’s the Numbers You Need to Know

Illinois Tool Works Inc. (NYSE:ITW) delivered a profit and met Wall Street’s expectations, AND beat the revenue expectation. Even though the company delivered solid numbers, the top-line declined year-over-year this quarter. Shares are down 2.57%.

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Illinois Tool Works Inc. Earnings Cheat Sheet

Results: Net income increased to $979 million (89 cents per diluted share) in the quarter versus a net gain of $442.2 million in the year-earlier quarter.

Revenue: Decreased 2.3% to $4.22 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Illinois Tool Works Inc. reported adjusted net income of 89 cents per share. By that measure, the company met the mean analyst estimate of $0.89. It beat the average revenue estimate of $4.15 billion.

Quoting Management: “In 2012, we grew our adjusted earnings per share 10 percent and improved operating margins by 50 basis points,” said E. Scott Santi, president and chief executive officer.  “We also invested nearly $100 million in restructuring projects, many of which were related to the execution of our enterprise strategy and related initiatives – portfolio management, business structure simplification and strategic sourcing…

…As we detailed at our investor meeting in New York last month, through our enterprise strategy we are positioning the company to deliver solid growth as well as very strong operating margin and return on invested capital performance over the next five years.”

Key Stats:

Revenue decreased 6.24% from $4.5 billion in the previous quarter. Net income increased 86.83% from $524 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.03 to a profit $1.02. For the current year, the average estimate has moved down from a profit of $4.1 to a profit of $4.08 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)