GLENVIEW, Ill. - Illinois Tool Works Inc. (NYSE:ITW) reported better-than-expected third quarter earnings and raised its full-year outlook on Wednesday, sending shares up 2.7% in early trading.
The industrial manufacturer posted adjusted earnings per share of $2.65 for Q3, surpassing analyst estimates of $2.51. Revenue came in at $4 billion, slightly below the $4.02 billion consensus forecast.
Illinois Tool Works saw organic revenue decline 1.4% YoY in the quarter. However, the company expanded operating margins to 26.5%, aided by 130 basis points of contribution from enterprise initiatives.
"All year, our focused execution and operational excellence have enabled the Company to effectively counter persistent market headwinds and achieve solid growth in margin and profitability," said CEO Christopher A. O'Herlihy.
Looking ahead, Illinois Tool Works raised its full-year 2024 earnings guidance to a range of $11.63 to $11.73 per share, well above the previous analyst consensus of $10.17. The company maintained its outlook for approximately flat revenue and organic growth for the year.
Illinois Tool Works repurchased $375 million of its own shares in Q3 and raised its quarterly dividend by 7% to an annualized $6.00 per share.
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