ITW - Illinois Tool Works picks up in trade post sequential quarter beat

For Q3, Illinois Tool Works ([[ITW]] +1.1%) reported a Q/Q growth of 29% to $3.3B; Y/Y it dipped 4.9% as organic revenue dropped 4.6%.Led by lower volume and higher restructuring expenses, operating margin narrowed to 23.8% from 25% in year ago quarter; it was partially offset by benefits from enterprise initiatives of 120 bps.Q3 recovery/segment-wise response:Six of seven segments delivered operating margin above 20%.GAAP EPS stood at $1.83 vs. $2.04 in the prior year period.  Free cash flow of $631M indicated 108% of net income.  After-tax return on invested capital improved to 29.6% from 29.2% in the prior year period.In August, company raised dividend by 7% to an annualized $4.56/share.FY20 organic revenue is estimated to grow (11)-(11.5)%; operating margin at 22-22.5% with an operating income of $2.7-$2.8B; FY21 guidance will be provided in FY20 scheduled for Feb 2021 release.Also Read: Illinois Tool Works: Taking The Right Path Towards Its 2023 Goals

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Illinois Tool Works picks up in trade post sequential quarter beat