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$ITW Event Update: ITW announced that it will hold 2Q15 conference call on Wednesday, July 22, 2015. The conference call will begin at 9 a.m. central time and will follow the release of second quarter financial results at 7 a.m. central time on that same day.
$ITW raised its FY18 guidance by $0.40 at the midpoint to reflect the benefits of a reduction in the tax rate. The company expects FY18 EPS to be about $7.45-7.65 and 1Q18 EPS is expected to be about $1.80-1.90. $ITW also expects to raise the dividend pay-out ratio from 43% to approx. 50% of free cash flow in Aug. 2018.
Industrial products and equipments manufacturer $ITW reported a loss for 4Q17, impacted by $658MM in charges associated with the US Tax Act. Net loss was $76MM, or $0.22 per share compared to a profit of $507MM, or $1.45 per share in 4Q16. However, revenue increased 7% YoY to $3.62Bil. Adj. EPS was $1.70, up 17%.
For FY17, $ITW raised its GAAP EPS guidance by $0.25 at the mid-point to a range of $6.62-6.72. The company expects organic revenue growth of 2-3% and operating margin of approx. 24.5%. For 4Q17, the company expects its GAAP EPS to be in the range of $1.55-1.65 and organic growth of 2-3%.
$ITW reported a 20% growth in 3Q17 earnings, helped by increased revenue and positive organic revenue growth in six segments. Net income was $640MM, or $1.85 per share, versus $535MM, or $1.50 per share in 3Q16. Adj. EPS was $1.71. Revenue rose 4% YoY to $3.6Bil as organic revenue and foreign currency translation each increased revenue by 2%.
During 2Q17, $ITW’s organic revenue grew 2.6%. Organic growth was positive in all major geographies with North America up 1.4% and international up 4.2%, driven primarily by Europe which was up 3.4% and China which was up 13.3%. Six of the company’s seven segments had positive organic growth.
$ITW raised its FY17 EPS guidance by $0.12 at the mid-point. Illinois Tool Works now expects earnings to be in the range of $6.32-6.52 per share, with organic revenue growth of 2-4%. For 3Q17, the company expects earnings to be in the range of $1.57 to $1.67 per share with organic growth of 1 to 3%.
$ITW's 2Q17 earnings were up 16% to $1.69 per share, with revenue growing 4.9% to $3.6Bil. Operating income of $874MM was up 10% and was the highest quarterly income total in the company’s history. Net income was $587MM, up from $525MM a year ago.
$ITW now sees FY17 earnings of $6.20-6.40 per share, with organic growth of 2-4%. ITW expects operating margin to exceed 23.5%. Effective tax rate is now estimated at 29%, resulting in an EPS benefit of $0.04 per share. For 2Q17, ITW sees EPS at $1.55-1.65 with organic growth of 2-4%.
$ITW reaffirmed its 2017 EPS guidance of $6.00-6.20, with organic growth forecast of 1.5-3.5%. $ITW also predicts operating margin to exceed 23.5% and free cash flow conversion to exceed 100% for the full-year. For 1Q17, $ITW sees EPS of $1.39-1.49, with organic growth of 1-2%, and operating margin to exceed 22.5%.
$ITW reported a rise in 4Q16 earnings driven by higher revenue as well as positive organic revenue growth from five of its seven segments. Net income rose to $507MM or $1.45 per share from $450MM or $1.23 per share last year. Revenue grew to $3.4Bil from $3.28Bil. Excluding non-recurring items, EPS increased 13% to $1.39.