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Dec 31, 2022
ITW Q4 2022 Earnings Report
ITW reported strong Q4 2022 results, driven by double-digit organic growth and margin improvement.
Key Takeaways
ITW's Q4 2022 saw revenue increase by 8% to $4.0 billion, with organic growth of 12%. Operating income rose by 18% to $986 million, resulting in an operating margin of 24.8%. GAAP EPS reached a record $2.95, including $0.61 from divestiture gains, while EPS excluding these gains was $2.34, a 21% increase.
Revenue increased by 8% to $4.0 billion, with organic growth of 12%.
Operating income reached a record $986 million, an 18% increase.
Operating margin improved by 210 bps to 24.8%.
GAAP EPS was $2.95, including $0.61 of divestiture gains; excluding these gains, EPS increased by 21% to $2.34.
Revenue by Segment
Forward Guidance
The company is initiating 2023 guidance including GAAP EPS in the range of $9.40 to $9.80 per share and organic growth of three to five percent based on current levels of demand and anticipated further slowing in certain end markets.
Positive Outlook
- GAAP EPS in the range of $9.40 to $9.80 per share
- Organic growth of three to five percent
- Operating margin is projected to be in the range of 24.5 to 25.5 percent
- Free cash flow is expected to be greater than 100 percent of net income
- The company plans to repurchase approximately $1.5 billion of its own shares
Challenges Ahead
- Foreign currency translation is expected to reduce revenue by approximately 0.75 percent
- Divestitures are expected to reduce revenue by approximately 0.75 percent
- Total revenue growth of 1.5 to 3.5 percent
- Projected effective tax rate is approximately 24 percent
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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