Earnings Preview: Illinois Tool Works

Jul.25.11 | About: Illinois Tool (ITW)

Illinois Tool Works (NYSE:ITW) is expected to report Q2 earnings on Tuesday, July 26 before the market open with a conference call scheduled for 10:00 am ET.

Guidance

Analysts are looking for EPS of $1.02 on revenue of $4.68B. The consensus range is 98c-$1.05 for EPS, and $4.53B-$4.82B for revenue, according to First Call. The company reported positive results in Q1, beating EPS and revenue estimates. The stock has traded modestly higher since then, and touched a new 52-week high of $59.27 earlier this month. The shares are up approximately 40% since making a 52-week low in August of last year. In June, the company forecast Q2 revenue growth of 17%-20% and FY11 revenue growth of 16%-18%. Recent sentiment on the street has been positive.

Analyst Views

On May 11, Barrington raised its target price on the shares to $80 from $60, citing better than expected Q1 results. They reiterated their Outperform rating on the stock. With a 40% upside move in less than a year, the stock currently sits near three year highs. As such, investors may need a large upside surprise in Q2 earnings to push the shares higher.