ITW Earnings: Tepid Top Line and No Margin Growth Combine to Produce a Weak Quarter

ITW produced no surprises the third quarter of 2024, with a slight decline in organic revenue growth and a 26.5% operating margin flat year over year. Shares reacted as such, trading slightly up premarket. We've raised our fair value estimate to $215 per share from $203 to reflect our more bullish long-term expectations as ITW looks to pivot away from refining its portfolio to focus on supercharging organic growth. Still, most of ITW's end markets have relatively weak secular growth drivers, which we think hampers the firm's ability to produce above-market growth.