ITW - Illinois Tool Works stock positive post Q4 results beat; guides FY21 EPS in-line with consensus

Illinois Tool Works ([[ITW]] +0.8%) beats Q4 estimates, reporting a slight revenue growth of ~0.2% Y/Y to $3.48B and organic revenue declined of 0.9% Y/Y. Net income of $642M (+0.2% Y/Y).Q4 Operating margin improved by 166 bps to 25.4%, with enterprise initiatives contributing 130 bps.Segment results:Q4 after-tax ROIC of 32%, up by 310 bp.Net cash provided by operating activities for FY20 was $2.81B compared to $2.99B a year ago. FCF was $2.57B, 122% of net income.FY21 Guidance: GAAP EPS in a range of $7.60 to $8.00 vs. $7.70 consensus; Organic growth is expected to be 7% to 10%; and Revenue is expected to grow in the range of 9% to 12%. Operating margin in range of 24% to 25%, and FCF is expected to be greater than 100% of net income.Company plans to repurchase ~$1B of its shares in FY21 and expects an effective tax rate in the range of 23% to

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Illinois Tool Works stock positive post Q4 results beat; guides FY21 EPS in-line with consensus