Illinois Tool Works Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Illinois Tool Works (NYSE:ITW) will unveil its latest earnings on Tuesday, January 29, 2013. Illinois Tool Works manufactures a range of industrial products and equipment for the automotive, construction, electronics, food/beverage, packaging, power system, decorative surfaces, and medical industries.

Illinois Tool Works Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 90 cents per share, no change from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 92 cents. Between one and three months ago, the average estimate moved up. It has dropped from 98 cents during the last month. For the year, analysts are projecting profit of $4.09 per share, a rise of 0.2% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 3 cents, coming in at net income of $1.09 a share versus the estimate of profit of $1.06 a share. It marked the fourth straight quarter of beating estimates.

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Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.61 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

Wall St. Revenue Expectations: Analysts predict a decline of 3.9% in revenue from the year-earlier quarter to $4.15 billion.

A Look Back: In the third quarter, profit rose 3.2% to $524 million ($1.12 a share) from $507.6 million ($1.04 a share) the year earlier, exceeding analyst expectations. Revenue fell 1.7% to $4.5 billion from $4.58 billion.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 3.6% in the fourth quarter of the last fiscal year, 3.6% in the first quarter and 0.9%in the second quarter before dropping in the third quarter.

The company enters this earnings announcement with steady profits recently. Net income has risen year-over-year average of 17.6% for the last four quarters.

Analyst Ratings: With 10 analysts rating the stock a buy, two rating it a sell and six rating the stock a hold, there are indications of a bullish stance by analysts.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)