Loading...
•
Mar 31, 2022
ITW Q1 2022 Earnings Report
ITW's Q1 2022 results reflected strong momentum, with revenue growth driven by organic expansion and strategic acquisitions.
Key Takeaways
ITW reported a strong first quarter in 2022, with revenue up 11.2% to $3.9 billion and organic growth of 10.6%. GAAP EPS was $2.11, and the company is raising its full-year guidance for organic growth and GAAP EPS.
Total revenue reached $3.9 billion, with organic growth of 11%.
GAAP EPS was $2.11, including a negative impact of $0.05 from foreign currency translation.
Operating margin stood at 22.7%, or 23.4% when excluding the MTS acquisition's dilution.
Full-year guidance was raised for GAAP EPS to $9.00-$9.40 and organic revenue growth to 7-10%.
ITW
ITW
ITW Revenue by Segment
Revenue by Segment
Automotive OEM Revenue
CapyFin.comFood Equipment Revenue
CapyFin.comTest & Measurement and Electronics Revenue
CapyFin.comWelding Revenue
CapyFin.comPolymers & Fluids Revenue
CapyFin.comConstruction Products Revenue
CapyFin.comSpecialty Products Revenue
CapyFin.com Forward Guidance
ITW is raising its full-year organic growth guidance to 7 to 10 percent and full-year revenue growth guidance to 8.5 to 11.5 percent. The company is also raising its full-year GAAP EPS guidance to $9.00 to $9.40 per share.
Positive Outlook
- Full-year organic growth guidance raised to 7-10%.
- Full-year revenue growth guidance raised to 8.5-11.5%.
- MTS acquisition expected to add 3% to revenue.
- Full-year GAAP EPS guidance raised to $9.00-$9.40 per share.
- Operating margin expected to expand to 24-25%.
Challenges Ahead
- Foreign currency translation is expected to reduce revenue by 1.5%.
- Margin dilution impact from the acquisition of MTS is expected to be 50 basis points.
- Price/cost impact is expected to reduce margin by 100 basis points.
- Higher working capital investments to support revenue growth.
- Increased inventory levels to mitigate supply chain risk.
Revenue & Expenses
Visualization of income flow from segment revenue to net income