Illinois Tool Works, Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Illinois Tool Works, Inc. (NYSE:ITW) will unveil its latest earnings on Tuesday, October 25, 2011. 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, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 98 cents per share, a rise of 18.1% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.05. Between one and three months ago, the average estimate moved down. It has been unchanged at 98 cents during the last month. For the year, analysts are projecting net income of $3.74 per share, a rise of 23.4% from last year.

Past Earnings Performance: Last quarter, the company fell short of estimates by 7 cents, coming in at profit of 96 cents per share against a mean estimate of net income of $1.02. The company topped expectations in the first quarter.

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Wall St. Revenue Expectations: On average, analysts predict $4.56 billion in revenue this quarter, a rise of 13.4% from the year ago quarter. Analysts are forecasting total revenue of $17.92 billion for the year, a rise of 12.9% from last year’s revenue of $15.87 billion.

Analyst Ratings: Analysts are bullish on Illinois Tool Works as eight analysts rate it as a buy, one rates it as a sell and seven rate it as a hold.

A Look Back: In the second quarter, profit rose 18.5% to $498.4 million (99 cents a share) from $420.8 million (83 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 13.2% to $4.61 billion from $4.08 billion.

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 14.5%, with the biggest boost coming in the first quarter when revenue rose 21.7% from the year earlier quarter.

The company has now been profitable for the last eight quarters, and for the last four, profit has risen year over year by an average of 36.6%. The quarter with the biggest boost was the first quarter, which saw a more than twofold surge.

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 July 26, 2011 to October 19, 2011, the stock price had fallen $5.71 (-11%) from $51.92 to $46.21. 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% (+$4.97) over that span. It saw one of its worst periods between September 15, 2011 and September 22, 2011 when shares fell for six-straight days, falling 7.7% (-$3.49) over that span. Shares are down $6.10 (-11.7%) year to date.

(Source: Xignite Financials)

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