Illinois Tool Works FY24 GAAP EPS Guidance Of $10.00-$10.40 Vs. $10.18 Est.
Portfolio Pulse from Benzinga Newsdesk
Illinois Tool Works (ITW) has provided its FY24 GAAP EPS guidance in the range of $10.00-$10.40, compared to the $10.18 estimate. The company expects an operating margin of 25.5 to 26.5 percent, with enterprise initiatives contributing about 100 basis points. ITW also plans to repurchase approximately $1.5 billion of its shares and anticipates a free cash flow greater than 100 percent of net income. The projected effective tax rate is expected to be between 24 to 24.5 percent.
February 01, 2024 | 1:07 pm
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Illinois Tool Works projects FY24 GAAP EPS of $10.00-$10.40, exceeding the $10.18 estimate, with significant share buybacks and strong free cash flow.
The positive EPS guidance above analyst estimates, combined with a substantial share repurchase program and the expectation of strong free cash flow, are likely to be viewed favorably by investors. These factors suggest a potential increase in shareholder value, leading to a positive short-term impact on ITW's stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100