Illinois Tool Works Shares Rise 3% on Strong Q3 Earnings

Illinois Tool Works (NYSE:ITW) saw its shares rise nearly 3% intra-day today after reporting third-quarter earnings that exceeded expectations and lifting its full-year guidance. The industrial manufacturer posted adjusted earnings per share of $2.65, surpassing the $2.51 analyst estimate, while revenue reached $4 billion, slightly below the projected $4.02 billion.

Despite a 1.4% decline in organic revenue year-over-year, Illinois Tool Works expanded its operating margin to 26.5%, bolstered by enterprise initiatives that added 130 basis points. CEO Christopher A. O'Herlihy credited the company’s operational execution and resilience in facing market challenges for the solid margin and profitability growth.

For the full-year 2024, Illinois Tool Works raised its earnings guidance to between $11.63 and $11.73 per share, significantly higher than the prior consensus of $10.17.