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Dec 31, 2023
ITW Q4 2023 Earnings Report
ITW's Q4 2023 performance remained stable with flat revenue and a strong operating margin, driven by enterprise initiatives.
Key Takeaways
ITW reported fourth-quarter revenue of $4.0 billion, essentially flat year-over-year, with operating income reaching a record $988 million. GAAP EPS was $2.38, including a negative impact from Argentina's currency devaluation. The company's operating margin was 24.8%, boosted by enterprise initiatives.
Revenue remained essentially flat at $4.0 billion.
Operating margin reached 24.8%, with enterprise initiatives contributing 150 bps.
GAAP EPS was $2.38, which included a negative impact of $(0.04) from Argentina's currency devaluation.
Free cash flow grew 39 percent to a record $908 million, with a conversion of 127 percent to net income.
Revenue by Segment
Forward Guidance
The company is initiating 2024 guidance including GAAP EPS in the range of $10.00 to $10.40 per share and revenue growth of two to four percent based on current levels of demand. Organic growth is projected to be one to three percent with foreign currency translation at current exchange rates adding approximately one percent to revenue. Operating margin is projected to be in the range of 25.5 to 26.5 percent, with enterprise initiatives contributing approximately 100 basis points. Free cash flow is expected to be greater than 100 percent of net income and the company plans to repurchase approximately $1.5 billion of its own shares. The projected effective tax rate is in the range of 24 to 24.5 percent.
Positive Outlook
- GAAP EPS of $10.00 to $10.40
- Revenue growth of 2 to 4%
- Organic growth of 1 to 3%
- Operating margin of 25.5 to 26.5%
- Free cash flow is expected to be greater than 100 percent of net income
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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