Zacks Research Has Pessimistic Outlook of ITW Q2 Earnings

Illinois Tool Works Inc. (NYSE:ITW) – Zacks Research reduced their Q2 2025 earnings estimates for shares of Illinois Tool Works in a note issued to investors on Wednesday, May 14th. Zacks Research analyst A. Bhattacharjee now forecasts that the industrial products company will earn $2.53 per share for the quarter, down from their prior forecast of $2.56. The consensus estimate for Illinois Tool Works’ current full-year earnings is $10.39 per share. Zacks Research also issued estimates for Illinois Tool Works’ Q4 2025 earnings at $2.65 EPS, FY2025 earnings at $10.19 EPS, Q1 2026 earnings at $2.55 EPS, Q4 2026 earnings at $2.80 EPS, Q1 2027 earnings at $2.81 EPS and FY2027 earnings at $11.74 EPS.

Other analysts have also recently issued research reports about the stock. Bank of America cut shares of Illinois Tool Works from a “neutral” rating to an “underperform” rating and set a $220.00 price target on the stock. in a research note on Wednesday, May 7th. UBS Group reduced their price target on Illinois Tool Works from $269.00 to $234.00 and set a “neutral” rating for the company in a report on Monday, April 7th. Barclays reduced their target price on Illinois Tool Works from $240.00 to $237.00 and set an “equal weight” rating on the stock in a research report on Thursday, May 1st. Truist Financial cut their target price on shares of Illinois Tool Works from $302.00 to $284.00 and set a “buy” rating on the stock in a research note on Thursday, May 1st. Finally, Robert W. Baird lifted their price objective on shares of Illinois Tool Works from $239.00 to $244.00 and gave the company a “neutral” rating in a research note on Thursday, May 1st. Three research analysts have rated the stock with a sell rating, eight have issued a hold rating, two have issued a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $253.67.

Illinois Tool Works Stock Performance

Shares of ITW stock opened at $248.10 on Friday. The stock has a market cap of $72.69 billion, a PE ratio of 21.17, a price-to-earnings-growth ratio of 4.56 and a beta of 1.12. Illinois Tool Works has a 12 month low of $214.66 and a 12 month high of $279.13. The company has a current ratio of 1.36, a quick ratio of 0.99 and a debt-to-equity ratio of 1.90. The company’s fifty day moving average price is $241.83 and its 200-day moving average price is $255.67.

Illinois Tool Works (NYSE:ITW) last released its quarterly earnings results on Wednesday, April 30th. The industrial products company reported $2.38 EPS for the quarter, beating analysts’ consensus estimates of $2.34 by $0.04. The firm had revenue of $3.84 billion during the quarter, compared to analyst estimates of $3.83 billion. Illinois Tool Works had a net margin of 21.94% and a return on equity of 95.39%. The business’s revenue for the quarter was down 3.4% on a year-over-year basis. During the same period in the previous year, the business earned $2.44 EPS.

Hedge Funds Weigh In On Illinois Tool Works

Institutional investors and hedge funds have recently modified their holdings of the stock. Ritholtz Wealth Management lifted its stake in shares of Illinois Tool Works by 31.6% in the 4th quarter. Ritholtz Wealth Management now owns 15,682 shares of the industrial products company’s stock valued at $3,976,000 after purchasing an additional 3,765 shares during the last quarter. Clarity Financial LLC acquired a new position in shares of Illinois Tool Works during the fourth quarter valued at about $315,000. Flywheel Private Wealth LLC bought a new position in Illinois Tool Works in the fourth quarter worth $263,000. Milestone Asset Management LLC bought a new stake in Illinois Tool Works in the 4th quarter valued at $941,000. Finally, Heck Capital Advisors LLC bought a new position in Illinois Tool Works during the fourth quarter worth about $739,000. 79.77% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In other Illinois Tool Works news, CFO Michael M. Larsen sold 41,472 shares of the firm’s stock in a transaction dated Friday, March 7th. The stock was sold at an average price of $271.25, for a total transaction of $11,249,280.00. Following the completion of the sale, the chief financial officer now directly owns 50,502 shares in the company, valued at approximately $13,698,667.50. This trade represents a 45.09% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Ernest Scott Santi sold 70,000 shares of the company’s stock in a transaction dated Wednesday, February 19th. The shares were sold at an average price of $263.30, for a total value of $18,431,000.00. Following the completion of the transaction, the director now owns 260,224 shares in the company, valued at $68,516,979.20. This represents a 21.20% decrease in their position. The disclosure for this sale can be found here. Insiders sold 159,925 shares of company stock worth $42,973,845 over the last quarter. Corporate insiders own 0.88% of the company’s stock.

Illinois Tool Works Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, July 11th. Shareholders of record on Monday, June 30th will be paid a dividend of $1.50 per share. This represents a $6.00 annualized dividend and a yield of 2.42%. The ex-dividend date is Monday, June 30th. Illinois Tool Works’s dividend payout ratio (DPR) is currently 52.77%.

Illinois Tool Works Company Profile

Illinois Tool Works Inc manufactures and sells industrial products and equipment in the United States and internationally. It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products.