Overview

* ITW Q3 revenue grows 2% to $4.06 bln, slightly below analyst expectations

* GAAP EPS for Q3 rises 6% to $2.81, excluding divestiture gain

* Company repurchased $375 mln of shares, raised dividend by 7% in Q3

Outlook

* ITW narrows full-year GAAP EPS guidance to $10.40-$10.50 per share

* Company projects 2025 revenue growth of 1% to 3%

* ITW expects 2025 operating margin between 26% and 27%

Result Drivers

* OPERATING MARGIN - Record operating margin of 27.4% driven by enterprise initiatives contributing 140 bps

* ORGANIC GROWTH - Organic revenue growth of 1% supported by customer-back innovation

* FOREIGN CURRENCY IMPACT - Revenue increased by 2% due to positive foreign currency translation

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Slight $4.06 $4.08

Revenue miss* bln bln (13

Analysts

)

Q3 EPS $2.81

*Applies to a deviation of less than 1%; not applicable for per share numbers

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 11 "hold" and 6 "sell" or "strong sell"

* The average consensus recommendation for the consumer goods conglomerates peer group is "buy."

* Wall Street's median 12-month price target for Illinois Tool Works Inc ( ITW ) is $260.50, about 1.2% above its October 23 closing price of $257.44

* The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 23 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)