Illinois Tool Works Raises 2016 Guidance By $0.05 At Mid-point - Quick Facts

(RTTNews) - Illinois Tool Works Inc. (ITW) announced the company is raising its 2016 full-year GAAP EPS guidance range by $0.05 to $5.40 to $5.60, which represents a 7 percent increase at the mid-point. Analysts polled by Thomson Reuters expect the company to report profit per share of $5.47. Analysts' estimates typically exclude special items.

The full year 2016 organic revenue growth forecast is unchanged at 1 to 3 percent and includes approximately 1 percentage-point of PLS impact. Operating margin is now projected to exceed 22.5 percent, an increase of more than 100 basis points.

For the second quarter 2016, the company expects GAAP EPS to be in a range of $1.34 to $1.44, an increase of 7 percent at the mid-point, and operating margin to be approximately 22.5 percent. Analysts polled by Thomson Reuters expect the company to report profit per share of $1.39. Organic revenue is forecast to be flat to up 2 percent.

The company reported first quarter earnings per share of $1.29, a 7 percent increase compared to the year-ago period. Operating margin increased 120 basis points to 22.1 percent and organic revenue increased 1 percent. Excluding the impact from foreign currency translation, EPS would have been up 10 percent. The company's ongoing Product Line Simplification activities reduced organic revenue growth by 1 percentage-point.