Investors Applaud ITW's Better-Than-Expected Q2 Numbers, Upbeat Forecast

Illinois Tool Works Inc. ITW delivered better-than-expected results for the second quarter. The company also provided upbeat forecast for the third quarter and boosted its full year guidance.

The company reported net income of $525 million, up 9.4 percent from $480 million while earnings advanced 12.3 percent to $1.46 a share from $1.30 a share in the year-ago quarter.

ITW's top line remained flat at $3.43 billion and came in line with the Zack analysts' expectations of $3.40 billion.

The company's Chairman and CEO, Scott Santi, commented, "I am also pleased with the progress that our segments are making in executing our framework for accelerated organic revenue growth, as evidenced by the fact that six of our seven segments delivered positive year on year organic growth in the quarter. As a result, we were able to overcome the continued challenging demand environment in our Welding segment and deliver 12% earnings per share growth."

Moving ahead, ITW expects earnings to be $1.42 - $1.52 a share for the third quarter. Zack analysts expect $1.46 a share. For the full year, the company lifted its earnings outlook by $0.10 a share to $5.50 - $5.70 a share. Street is looking for $5.51 a share.

In the pre-market on Wednesday, the stock traded 1.25 percent up.