ITW Q1 Earnings Up, Tops View; Lifts FY EPS View

(RTTNews) - Industrial equipment maker Illinois Tool Works Inc. (ITW) said its net income for the first quarter rose to $473 million or $1.11 per share from last year's $354 million or $0.78 per share.

Earnings from continuing operation increased to $428 million or $1.01 per share from $401 million or $0.88 per share a year ago. On average, 18 analysts polled by Thomson Reuters expected the company to earn $0.98 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter rose 4 percent to $3.6 billion. Fourteen analysts had consensus revenue estimate of $3.57 billion for the quarter.

Organic revenues increased 3.3 percent, with overseas up 6.3 percent and North America up 1.0 percent. Internationally, European and Asia Pacific organic revenues grew 4.8 percent and 7.2 percent, respectively.

Looking forward to the next quarter, the company said it expects earnings per share of $1.16 - $1.24, on revenue growth of 3 percent to 5 percent. Analysts are looking for earnings per share of $1.16 for the June quarter.

Further, ITW said it is raising its full-year earnings per share guidance to a range of $4.45 - $4.65, with the $4.55 mid-point representing a 25 percent increase versus last year. The company said the revised forecast is driven by the accelerated share repurchase program as well as continued contributions from enterprise initiatives. Annual total revenue is expected to grow in the range of 3 percent to 4 percent. The Street currently is looking for earnings per share of $4.45 for the year.