Earnings Preview: Illinois Tool Works

| About: Illinois Tool (ITW)

Illinois Tool Works (NYSE:ITW) is expected to report Q2 earnings on Tuesday, July 24 before the market open with a conference call scheduled for 10:00 am ET.


Analysts are looking for EPS of $1.10 on revenue of $4.86B. The consensus range is $1.05-$1.14 for EPS, and $4.72B-$5B for revenue, according to First Call. The company reported mixed results in Q1, beating EPS but narrowly missing revenue estimates. On its Q1 earnings report, management raised FY12 EPS guidance to $4.14-$4.38 from $4.02-$4.26, consensus $4.15. It forecast FY12 revenue growth of 5%-7%. It guided Q2 EPS $1.08-$1.16, consensus $1.08, and Q2 revenue growth of 3.5%-6%. It cited better-than-expected first quarter results and share repurchase activity for the raised outlook. Management said that despite uneven end market demand in Europe, it remained optimistic about full-year prospects. Since Q1 results were released in late April, the stock made a 52-week high of $58.26 and then traded modestly lower, dropping about 10%. Since the start of the year, the shares are up approximately 12%, but are virtually flat on a year-over-year basis. Over the past three months, sentiment on the street has been mixed, with several upgrades and downgrades.