Investors in Illinois Tool Works Inc. (NYSE:ITW) had a good week, as its shares rose 2.8% to close at US$261 following the release of its quarterly results. It looks like a credible result overall - although revenues of US$4.0b were what the analysts expected, Illinois Tool Works surprised by delivering a (statutory) profit of US$3.91 per share, an impressive 55% above what was forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Illinois Tool Works

Taking into account the latest results, the consensus forecast from Illinois Tool Works' 17 analysts is for revenues of US$16.5b in 2025. This reflects a satisfactory 3.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to reduce 7.4% to US$10.78 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$16.6b and earnings per share (EPS) of US$10.76 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of US$255, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Illinois Tool Works at US$312 per share, while the most bearish prices it at US$215. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Illinois Tool Works' past performance and to peers in the same industry. We would highlight that Illinois Tool Works' revenue growth is expected to slow, with the forecast 2.8% annualised growth rate until the end of 2025 being well below the historical 4.8% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.0% annually. Factoring in the forecast slowdown in growth, it looks like Illinois Tool Works is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Illinois Tool Works going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Illinois Tool Works you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.