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Sep 30, 2024
ITW Q3 2024 Earnings Report
ITW delivered solid third quarter results, navigating market challenges with strong operational execution.
Key Takeaways
ITW reported third quarter revenue of $4.0 billion, a decrease of 2% with organic growth declining 1%. GAAP EPS was $3.91, including a divestiture gain of $1.26; ex-gain EPS was $2.65, an increase of 4%. The company is raising full year GAAP EPS guidance by $1.33 to a range of $11.63 to $11.73 per share.
Revenue of $4.0 billion, a decrease of 2% as organic growth declined 1%.
Operating margin of 26.5% as enterprise initiatives contributed 130 basis points.
GAAP EPS of $3.91 included a divestiture gain of $1.26; ex-gain EPS of $2.65, an increase of 4%.
Raising full year GAAP EPS guidance by $1.33 to a range of $11.63 to $11.73 per share.
Revenue by Segment
Forward Guidance
ITW is incorporating the impact of the divestiture gain and a lower projected effective tax rate for the full year of approximately 21.5 percent into its 2024 guidance and raising GAAP EPS by $1.33 from the previous range of $10.30 to $10.40 to a new range of $11.63 to $11.73 per share. Based on current levels of demand and foreign currency exchange rates, the Company is maintaining its previous guidance for revenue and organic growth to be approximately flat for 2024. Operating margin is projected to be in the range of 26.5 to 27 percent, an improvement of 165 basis points at the midpoint, with enterprise initiatives projected to contribute more than 100 basis points. Free cash flow is projected to be approximately 100 percent of adjusted net income and the company plans to repurchase approximately $1.5 billion of its own shares.
Positive Outlook
- Raising GAAP EPS guidance by $1.33 to a range of $11.63 to $11.73 per share.
- Maintaining previous guidance for revenue and organic growth to be approximately flat for 2024.
- Operating margin is projected to be in the range of 26.5 to 27 percent, an improvement of 165 basis points at the midpoint.
- Enterprise initiatives projected to contribute more than 100 basis points.
- Free cash flow is projected to be approximately 100 percent of adjusted net income.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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