Illinois Tool Works (ITW) Q3 Earnings: Will It Disappoint?
Zacks Investment Research | Oct 19, 2016 06:55AM ET
Industrial products and equipment manufacturer Illinois Tool Works Inc. (NYSE:ITW) is set to release third-quarter 2016 results on Oct 20, before the market opens. The Zacks Consensus Estimate is pegged at $1.49 per share.
Illinois Tool Works’ better-than-expected results in the last four quarters resulted in a positive average earnings surprise of 2.63%. The earnings surprise was highest at 4.29% in the last quarter, with reported earnings of $1.46 per share exceeding the Zacks Consensus Estimate of $1.40.
Let us see how things are shaping up for Illinois Tool Works Inc. prior to this earnings announcement.
Factors to Influence Q3 Results
Illinois Tool Works is exposed to several headwinds in the near term. This is likely to suppress its growth momentum derived from its organic and inorganic growth tactics, long-term Enterprise Strategy and sound capital allocation schemes. Among many, the prevailing uncertainties in the global economy, especially in some major developed and emerging nations, are likely to influence the company’s trade relations with them. Also, forex woes are still playing spoilsports for its international businesses.
Coming to the micro issues, a challenging demand environment in the Welding segment might impact Illinois Tool Works’ top-line results in the quarter. Also, industry rivalry and volatilities in input price & supply are major concerns for the company.
Earnings Whispers
Our proven model conclusively shows that Illinois Tool Works is likely to disappoint earnings in third quarter. The company lacks the two key ingredients for a possible earnings beat – a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold).
Zacks ESP: Illinois Tool Works has an ESP of -0.67%, with the Most Accurate Estimate of $1.48 lagging the Zacks Consensus Estimate of $1.49.
Zacks Rank: Illinois Tool Works currently has a Zacks Rank #4 (Sell).
ILL TOOL WORKS Price and EPS Surprise
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