Earnings Preview: Illinois Tool Works

Illinois Tool Works (ITW) is expected to report Q2 earnings before market open Thursday, July 17, with a conference call scheduled for 2:00 pm ET.

Guidance

Analysts are looking for EPS of 97c on revenue of $798.25M. The consensus range is 63c to 86c for EPS, and $755M to $853.86M for revenue, according to First Call. The company gave guidance in April when it reported its Q1 earnings, and reiterated that guidance on June 16. Illinois Tool Works expects Q2 EPS of 94c to $1.00 and expects Q2 revenue growth of 9% to 12%. The company expects FY08 EPS of $3.35 to $3.49 vs. consensus of $3.63, and expects FY08 revenue growth of 8% to 12%.

Analyst Views

Credit Suisse downgraded the company in April to Neutral from Outperform, citing their cautious view of the macro economy. Wachovia lowered second half 2008 and 2009 estimates for Illinois Tool Works citing the weaker outlook and higher input costs.

Investors will be interested to see if the company meets its forecasted goals, or if the slowing economy will affect Illinois Tool Works' Q2 results.