Illinois Tool Works Inc. (ITW) boosted its second-quarter guidance after reclassifying a unit meant for divestment under continuing operations.
The maker of industrial products now expects earnings of 29 cents to 41 cents per share, compared to the previous forecast of 25 cents to 37 cents.
The consensus estimate is pegged at 30 cents per share, which has declined 5 cents, or 14%, over the past 2 months.
The enhanced guidance is the result of the company’s decision not to sell its Decorative Surfaces unit, which was put on the block in August last year due to sluggish market conditions.
Meanwhile, Illinois Tool Works said operating revenue fell 26% for the 3 months ending May 2009, as a decline in base revenue coupled with a stronger dollar affected performance.
Five out of 15 covering analysts boosted full-year expectations over the past month, sending the average forecast higher by 4 cents, or 3%, to $1.31 per share.
ITW, a Zacks #3 Rank (“Hold”) stock, is trading on volume of approximately 1 million, against the average daily volume of about 3.7 million.
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