LONDON, UK / ACCESSWIRE / January 26, 2018 / Active-Investors.com has just released a free earnings report on Illinois Tool Works Inc. (NYSE: ITW) ("ITW"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=ITW. The Company reported its fourth quarter fiscal 2017 and full fiscal 2017 operating and financial results on January 24, 2018. The equipment manufacturer for the transportation, power, food, and construction industries achieved a Company record Q4 operating margin, and raised its earnings guidance at the midpoint for the fiscal year. Register today and get access to over 1000 Free Research Reports by joining our site below:
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Illinois Tool Works most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
Earnings Highlights and Summary
For Q4 2017, ITW's revenue grew 7% to $3.63 billion compared to $3.40 billion in Q4 2016, as organic revenue increased 4% and foreign currency translation increased revenue by 3%. The Company's revenue numbers topped analysts' estimates of $3.55 billion.
For the full year FY17, ITW's revenue increased 5% to $14.3 billion, with an organic growth of 3%.
For Q4 2017, ITW's operating margin came in at 23.4%, reflecting an increase of 160 basis points and a new Q4 record for the Company, with enterprise initiatives contributing 140 basis points of margin improvement.
For Q4 2017, ITW reported a GAAP net loss of $76 million, or $0.22 loss per diluted share, compared to a GAAP net income of $507 million, or $1.45 per diluted share, in Q4 2016. The Company's reported quarter results included a one-time $658 million charge associated with the enactment of the "Tax Cuts and Jobs Act." Excluding this one-time item, ITW's earnings advanced 17% to $1.70 per share.
For FY17, ITW posted a GAAP net income of $1.69 billion, or $4.86 per diluted share, compared to earnings of $2.04 billion, or $5.70 per diluted share, in FY16. The Company's results included a $658 million unfavorable tax impact, and a $0.17 benefit from a favorable legal item. Excluding these one-time items, ITW's earnings advanced 16% to $6.59 on a y-o-y basis for FY17.
During Q4 2017, ITW's Automotive OEM segment reported revenues of $828 million, up 7% on a y-o-y basis and reported an overall organic growth of 3% in a flat market with above market growth in all geographies. The segment's operating margin improved 10 basis points to 23.1% despite price cost headwinds.
For Q4 2017, ITW's Food Equipment segment's revenue grew 3% to $548 million on a y-o-y basis, with organic revenue flat in the reported quarter. The segment's operating margin soared 110 basis points to 25.8% in the reported quarter.
ITW's Polymers & Fluids segment's revenue grew 4.9% to $427 million in Q4 2017, with a positive organic revenue growth of 3% as fluids grew by 5% and automotive aftermarket and polymers both grew 2%. The segment's operating margin came in at 19.9%, up 90 basis points versus the year ago same period, and included 400 basis points of non-cash expenses associated with amortizing acquisition-related intangible assets.
For FY17, ITW's after tax-return on invested capital (ROIC) was at an all-time record at 24.4%, reflecting an increase of 230 basis points. The Company's free cash flow increased 9% to $2.2 billion. In terms of capital allocation in 2017, ITW invested almost $600 million in businesses for growth and productivity.
Full-Year and First Quarter 2018 Guidance
ITW raised its 2018 full-year guidance by $0.40 at the midpoint to reflect the benefits of a reduction in the tax rate to an estimated range of 25% to 26% and current foreign exchange rates. The Company is projecting 2018 GAAP earnings to be in the band of $7.45 to $7.65 per share with an organic growth of 3% to 4%.
For the first quarter 2018, ITW is forecasting GAAP earnings to be in the range of $1.80 to $1.90 per share, with an organic growth of 3% to 4%.
Subject to formal Board approval, ITW expects to accelerate plans to increase its dividend pay-out ratio from 43% to approximately 50% of free cash flow on a run rate basis in August 2018.
Stock Performance Snapshot
January 25, 2018 - At Thursday's closing bell, Illinois Tool Works' stock was slightly up 0.58%, ending the trading session at $174.76.
Volume traded for the day: 1.53 million shares, which was above the 3-month average volume of 1.17 million shares.
Stock performance in the last month - up 4.57%; previous three-month period - up 10.31%; past twelve-month period - up 35.93%; and year-to-date - up 4.74%
After yesterday's close, Illinois Tool Works' market cap was at $60.01 billion.
Price to Earnings (P/E) ratio was at 26.80.
The stock has a dividend yield of 1.79%.
The stock is part of the Industrial Goods sector, categorized under the Diversified Machinery industry. This sector was up 0.7% at the end of the session.
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