Illinois Tool Works, Inc. Second Quarter Earnings Preview

S&P 500 (NYSE:SPY) component Illinois Tool Works, Inc. (NYSE:ITW) will unveil its latest earnings on Tuesday, July 26, 2011. Illinois Tool Works Inc. 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, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.02 per share, a rise of 22.9% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.01. Between one and three months ago, the average estimate moved up, but has dropped from $1.04 during the last month. For the year, analysts are projecting profit of $3.92 per share, a rise of 29.4% from last year.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the first quarter, it reported net income of 91 cents per share against a mean estimate of profit of 84 cents per share. In the fourth quarter of the last fiscal year, it missed forecasts by one cent.

Savvy Investing Tip: Our CHEAT SHEET investing framework recommends only stocks with two straight quarters of earnings growth. Learn More >>

Wall St. Revenue Expectations: On average, analysts predict $4.69 billion in revenue this quarter, a rise of 15% from the year ago quarter. Analysts are forecasting total revenue of $18.36 billion for the year, a rise of 15.7% from last year’s revenue of $15.87 billion.

Analyst Ratings: 11 out of 18 analysts surveyed (61.1%) have a buy rating on Illinois Tool Works.. This is below the mean analyst rating of 10 competitors, which average 75% buy ratings.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 16.2%, with the biggest boost coming in the most recent quarter when revenue rose 21.7% from the year earlier quarter.

The increase in profit in the first quarter comes after net income fell in the previous quarter. In the first quarter, net income rose more than twofold to $623.1 million. In the fourth quarter of the last fiscal year, net income fell 22.6%.

Competitors to Watch: Dover Corporation (NYSE:DOV), Nordson Corporation (NASDAQ:NDSN), Entegris, Inc. (NASDAQ:ENTG), Graco Inc. (NYSE:GGG), Flow International Corp. (NASDAQ:FLOW), 3M Company (NYSE:MMM), Myers Industries, Inc. (NYSE:MYE), Taylor Devices, Inc. (NASDAQ:TAYD), Core Molding Tech., Inc. (AMEX:CMT), and Pall Corporation (NYSE:PLL).

Stock Price Performance: During April 25, 2011 to July 20, 2011, the stock price had risen $2.51 (4.6%) from $54.07 to $56.58. The stock price saw one of its best stretches over the last year between June 24, 2011 and July 7, 2011 when shares rose for nine-straight days, rising 9.3% (+$5.01) over that span. It saw one of its worst periods between August 9, 2010 and August 16, 2010 when shares fell for six-straight days, falling 6.7% (-$2.99) over that span. Shares are up $3.84 (+7.3%) year to date.

(Source: Xignite Financials)

Get Actionable Investing Insights: Check Out Wall St. Cheat Sheet’s newest Feature Trades of the Month!

More from The Cheat Sheet