Illinois Tool Works Inc. (ITW) increased its guidance for earnings per share (EPS) from continuing operations to a range of 80 – 86 cents from its prior guidance range of 74 – 86 cents for the second quarter of 2010. The upward revision is based on higher revenue growth expectations in the range of 18% – 20% versus the prior forecast of 15% – 19% in the backdrop of healthy domestic and international demand for its products.
Illinois Tool, however, reiterated its EPS guidance of $2.72 to $3.08 for the fiscal year 2010. The guidance is based on total revenue growth assumption of 10% – 14% and currency translation impact in the range of 6 – 7 cents for the second half of 2010.
Illinois Tool also reported a 21% year-over-year increase in its operating revenues for the three months ended May 31, 2010. The increase includes a 15% growth attributable to an increase in base revenue, 2% to acquisitions and 4% to currency translation.
Illinois Tool’s growth stems from its ability to develop new and improved products as well as broadening the application of established products. Improvising and developing new methods, processes and equipment along with acquisitions give the company a big push. Moreover, new products are designed to be more cost-effective by eliminating steps in manufacturing processes, reducing the number of parts in an assembly, or by improving the quality of customers’ assembled products.
Illinois Tool Works, operating through 800 business units in 57 countries is one of the leading manufacturers of industrial products and equipment. Prime competitors include Cooper Industries plc (CBE), General Electric Co. (GE), and Manitowoc Co. Inc. (MTW). We currently maintain our Neutral recommendation on the stock, which is in line with the Zacks Rank of #3 (Hold).
Illinois Tool, however, reiterated its EPS guidance of $2.72 to $3.08 for the fiscal year 2010. The guidance is based on total revenue growth assumption of 10% – 14% and currency translation impact in the range of 6 – 7 cents for the second half of 2010.
Illinois Tool also reported a 21% year-over-year increase in its operating revenues for the three months ended May 31, 2010. The increase includes a 15% growth attributable to an increase in base revenue, 2% to acquisitions and 4% to currency translation.
Illinois Tool’s growth stems from its ability to develop new and improved products as well as broadening the application of established products. Improvising and developing new methods, processes and equipment along with acquisitions give the company a big push. Moreover, new products are designed to be more cost-effective by eliminating steps in manufacturing processes, reducing the number of parts in an assembly, or by improving the quality of customers’ assembled products.
Illinois Tool Works, operating through 800 business units in 57 countries is one of the leading manufacturers of industrial products and equipment. Prime competitors include Cooper Industries plc (CBE), General Electric Co. (GE), and Manitowoc Co. Inc. (MTW). We currently maintain our Neutral recommendation on the stock, which is in line with the Zacks Rank of #3 (Hold).
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