- Illinois Tool Works Inc (NYSE:ITW) shares are down Tuesday following its first-quarter results, which were above Street view. The company also warned that the near-term economic outlook continues to be uncertain.
- ITW reported first-quarter FY23 revenue growth of 2% year-over-year to $4.02 billion, +5% on an organic basis, beating the consensus of $3.98 billion.
- Revenue Growth by Segments: Food Equipment +12.3% Y/Y, Welding +9.6%, Construction Products -4.6%, Polymers & Fluids -7%, Automotive OEM +4.7% Y/Y, Test & Measurement, and Electronics +2.6% Y/Y; and Specialty Products -6.4% Y/Y.
- The operating income increased 9% Y/Y to $972 million, and the operating margin was 24.2%, up 146 bps.
- EPS improved 10% Y/Y to $2.33, beating the consensus of $2.23.
- ITW’s operating cash flow for the quarter was $728 million, and free cash flow was $615 million (+147% Y/Y), with a conversion rate to net income of 86%.
- “While the near-term economic outlook continues to be uncertain, I am confident that ITW remains well positioned to deliver best-in-class performance in any environment,” commented E. Scott Santi, Chairman, and Chief Executive Officer.
- FY23 Guidance, raised: ITW expects total revenue growth of 2%-4% (prior 1.5%-3.5%), with 3%-5% organic growth.
- ITW sees GAAP EPS of $9.45-$9.85 (prior $9.40-$9.80) versus the $9.59 consensus.
- It expects an operating margin of 24.5% – 25.5%, with enterprise initiatives contributing 100 bps. It plans to repurchase ~$1.5 billion of its shares.
- Price Action: ITW shares traded lower by 4.97% at $233.60 on the last check Tuesday.
Morgan Stanley Maintains Overweight on Signature Bank, Lowers Price Target to $244
Morgan Stanley analyst Manan Gosalia maintains Signature Bank (NASDAQ:SBNY) with a Overweight and lowers the price target from $247 to $244.
