Illinois Tool Works Equity Research

Illinois Tool Works is always one of the most interesting industrial companies to follow because it has broad exposure to the industrial economy. In particular, Foolish investors in peers like Johnson Controls Inc.  and 3M Company should take note, while Fools invested in industrial supply companies like WESCO International Inc.  and Fastenal Company will surely have an interest, too.

How Illinois Tool Works makes money
A quick look at Illinois Tool Works' revenue by end market reveals how diverse its end-market customers are. Even within the automotive segment, it sells into a mix of original equipment manufacturers and aftermarket customers. It's a similar story within its construction (residential, commercial, and renovation) and its food (institutional, service, and retail) sales, too.

 

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WESCO Equity Research and Analysis

The industrial sector's winter of discontent continued with industrial supply company WESCO (NYSE: WCC  ) managing to miss estimates in the fourth quarter. There is no doubt that weather has had a serious effect on the industrial sector, but anecdotal evidence suggests that long-cycle industrial orders are doing well. Meanwhile, companies exposed to short-cycle orders are seeing an inevitable slowdown. Is this creating a buying opportunity whereby growth will snap back rapidly? Moreover, which sectors are seeing growth?

WESCO misses estimates
Sales came in below internal expectations for the fourth quarter, and WESCO further disappointed the market by announcing that its January sales to date were down 4%. All of which must make Foolish investors wonder how the company is going to hit its guidance of flat to 3% growth in sales for the first quarter.

 

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