Illinois Tool Works (ITW) Tops Q1 EPS by 21c, Revenues Beat; Raises FY21 EPS Guidance Above Consensus

Illinois Tool Works (NYSE: ITW) reported Q1 EPS of $2.11, $0.21 better than the analyst estimate of $1.90. Revenue for the quarter came in at $3.54 billion versus the consensus estimate of $3.44 billion.

• Total revenue of $3.5 billion, an increase of 10%
• Organic growth of 6%, 8% on an equal days’ basis
• Record Q1 financial performance:
  • Operating income of $905 million, an increase of 19%
  • Operating margin of 25.5%, an increase of 190 basis points
  • GAAP EPS of $2.11, an increase of 19%
  • After-tax ROIC of 32.1%

“We saw continued improvement in the demand environment across a broad cross section of our business portfolio in the first quarter and our teams around the world responded,” said E. Scott Santi, Chairman and Chief Executive Officer. “The combination of the ‘Win the Recovery’ actions we initiated over the course of the past year, the foundational strength of ITW’s 80/20 front-to-back business system, and our continuing progress in executing our long-term enterprise strategy allowed us to meet our customers’ increasing needs while delivering excellent profitability leverage, as evidenced by our 19 percent earnings growth, 45 percent incremental margins, and 120 basis points of margin benefit from enterprise initiatives in the quarter. While a number of significant issues and uncertainties remain on the path to recovery from the COVID-19 pandemic globally, I am confident that ITW is well-positioned to both seize the opportunities and deal with the challenges that lie ahead as we move through the balance of 2021.”

GUIDANCE:

Illinois Tool Works sees FY2021 EPS of $8.20-$8.60, versus the consensus of $7.96.

For earnings history and earnings-related data on Illinois Tool Works (ITW) click here.

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