Illinois Tool Works Inc.
(
ITW
) is slated to release its fourth quarter and fiscal year 2011
results on Tuesday, January 31, 2012. The current Zacks Consensus
Estimate for earnings per share (
EPS
) is 88 cents, representing an annualized growth of 11.65%.
Estimate for the fiscal year stands at $3.73 per share, up 23.21%
year over year.
With respect to earnings surprises, over the trailing four
quarters, Illinois Tool outperformed the Zacks Consensus Estimate
in two quarters and underperformed in the other two quarters. The
average earnings surprise was a positive 0.81%, implying that the
company outperformed the Zacks Consensus Estimate by the same
magnitude over the last four quarters.
Third Quarter Highlights
Illinois Tool's third quarter results were impressive as
earnings per share from continuing operations escalated 25.0% year
over year to $1.00. Results surpassed the Zacks Consensus Estimate
of 98 cents per share and were a cent above the mid-point of
management's guidance range of $0.95-$1.03.
With regard to the top line, operating revenue in the quarter
increased 16.2% year over year to $4,580.5 million; above the Zacks
Consensus Estimate of $4,556.0 million. The year-over-year increase
in operating revenue symbolized continued improvement in end market
demand. The year-over-year increase was roughly in line with
management's projected growth range of 15%-18%.
For further details please follow the link:
ITW's 3Q Surpasses Estimate
Agreement & Magnitude of Estimate Revisions
In the last 30 days, out of the analysts providing estimates,
one lowered his earnings per share (
EPS
) estimate for the fourth quarter and fiscal year 2012. Apart from
these, there was no change in estimates for the company.
Magnitude of the change was not substantial, as the fourth
quarter 2011 and fiscal year 2012 estimates fell by a cent to 88
cents and $4.14 per share. These represented year-over-year growth
of 11.65% and 10.94%, respectively.
Our Take
For the fourth quarter 2011, we prefer remaining on the
sidelines based on management's cautious outlook for the quarter.
EPS guidance range of 86-94 cents stands below the company's third
quarter reported EPS of $1.00, with the mid-point representing a
10% fall from the latter. Illinois Tools anticipates soft European
revenue, higher restructuring costs and no contributions from
currency translation in the fourth quarter.
Taking these factors into account, we have set our fourth
quarter estimate at 88 cents per share, roughly 12% down
sequentially. The forthcoming results are expected to be softer on
a sequential comparison, with some elevation expected from
acquisitions, share buybacks and dividend payments.
Illinois Tool Works is one of the leading manufacturers of
industrial products and equipment. The company faces stiff
competitions from its peers including
Cooper Industries plc
(
CBE
),
General Electric Co.
(
GE
), and
Manitowoc Co. Inc.
(
MTW
).
COOPER INDS PLC (
CBE
): Free Stock Analysis Report
GENL ELECTRIC (
GE
): Free Stock Analysis Report
ILL TOOL WORKS (
ITW
): Free Stock Analysis Report
MANITOWOC INC (
MTW
): Free Stock Analysis Report
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