Illinois Tool Works stock set to rise after profit and revenue fall, but beat expectations

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Shares of Illinois Tool Works Inc. were indicated up more than 1% in premarket trading Friday, after the multi-industrial manufacturer reported third-quarter profit and revenue that fell, amid the negative impacts of the COVID-19 pandemic, but beat Wall Street expectations. Net income declined to $582 million, or $1.83 a share, from $660 million, or $2.04 a share, in the year-ago period. The FactSet consensus for earnings per share was $1.47. Revenue fell 4.9% to $3.31 billion, but was above the FactSet consensus of $2.98 billion. Operating margin declined to 23.8% from 25.0%, weighed down by lower volume and higher restructuring expenses. The stock has advanced 12.3% year to date through Thursday, while the SPDR Industrial Select Sector ETF has slipped 0.8% and the S&P 500 has gained 6.9%.
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