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Jun 30, 2022
ITW Q2 2022 Earnings Report
ITW's Q2 2022 results were reported, revealing a strong performance driven by organic growth and effective cost management.
Key Takeaways
ITW reported a 9% increase in revenue to $4.0 billion, driven by 10% organic growth. GAAP EPS was $2.37, and the company maintained its full-year guidance, including organic revenue growth of 7% to 10% and record GAAP EPS of $9.00 to $9.40 per share.
Total revenue reached $4.0 billion with 10% organic growth.
GAAP EPS was $2.37, which included a negative impact from foreign currency translation and higher restructuring expenses.
Operating margin was 23.1%, benefiting from operating leverage but offset by price/cost impacts and headwinds from the MTS acquisition and restructuring expenses.
Full-year 2022 guidance was maintained, projecting organic revenue growth of 7% to 10% and record GAAP EPS of $9.00 to $9.40.
Revenue by Segment
Forward Guidance
ITW is maintaining its full-year GAAP EPS guidance of $9.00 to $9.40 per share. Based on current levels of demand, the company is projecting full-year revenue growth in the range of six to nine percent, with organic growth of seven to ten percent.
Positive Outlook
- Maintaining full-year GAAP EPS guidance of $9.00 to $9.40 per share.
- Projecting full-year revenue growth in the range of six to nine percent.
- Expecting organic growth of seven to ten percent.
- Acquisition of MTS is expected to add three percent to revenue.
- Operating margin is forecasted to be in the range of 24 to 25 percent.
Challenges Ahead
- Currency translation is projected to reduce revenue by four percent and EPS by approximately $(0.35).
- Price/cost margin dilution impact of (100) basis points.
- Unfavorable operating margin impact of amortization expense from acquisition-related intangible assets
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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