Benzinga | Jul 29, 2021 10:42AM EDT

Earnings Outlook For Illinois Tool Works

On Friday, July 30, Illinois Tool Works (NYSE:ITW) will release its latest earnings report. Benzinga's outlook for Illinois Tool Works is included in the following report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Illinois Tool Works EPS is expected to be around $2.05, according to sell-side analysts. Sales will likely be near $3.54 billion. In the same quarter last year, Illinois Tool Works announced EPS of $1.01 on revenue of $2.56 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The analyst consensus estimate would represent a 102.97% increase in the company's earnings. Sales would be up 38.07% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past: Quarter Q1 2021 Q4 2020 Q3 2020 Q2 2020EPS Estimate 1.90 1.79 1.46 0.70EPS Actual 2.11 2.02 1.83 1.01Revenue Estimate 3.44 B 3.33 B 2.97 B 2.33 BRevenue Actual 3.54 B 3.48 B 3.31 B 2.56 B

Want Real-Time Earnings Calendar Updates?

Benzinga consistently updates its earnings calendars to stay up-to-date with the latest company earnings reports. Check out the full earnings calendar list updated in real-time by following this link.

Stock Performance

Over the last 52-week period, shares are up 22.23%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Illinois Tool Works is scheduled to hold the call at 10:00:00 ET and can be accessed here.