Illinois Tool Works Earnings: Revenue Strengthens for Fifth Straight Quarter by Double-Digits

Illinois Tool Works (NYSE: ITW) announced its results for the second quarter on July 26, 2011. Let's take a closer look at the company's industry, financials, and commentary and see what steps you can take next.

Earnings and Revenue:
Illinois Tool Works fell short of estimates with EPS of adjusted net income of 99 cents/share and revenues of $4.61 billion. Analysts were expecting EPS of $1.02/share and revenues of $4.69. EPS rose 19.3% while revenue climbed 13.2% from the same period last year.

For the past five quarters, net income has increased 56.9% year over year on average. The biggest gain came in the second quarter of the last fiscal year, when income climbed more than twofold from the year earlier quarter. Year over year revenue increases in the past five quarters have averaged 15.6%.

Income:
For the year, Illinois Tool Works reported net income of $3.52 per share. The company fell short of analysts projections of $3.55. According to the reported number, the company's income rose 18.5% from last year's levels.

Official Comment:
"While our second quarter performance reflected solid demand from a number of worldwide end markets, our 17.5 percent total revenue growth was slightly below our original expectations," said David B. Speer, chairman and chief executive officer. "Both our total revenue and organic revenue growth rates in the second quarter were approximately 100 basis points lower than forecasted in April. We also anticipate similar moderating demand levels in the second half of 2011. As a result, we have modestly adjusted our third quarter revenue assumptions as well as our full-year earnings forecast. Nonetheless, we still believe overall end markets continue to be in a long-term recovery mode."

Industry:
Illinois Tool Works' industry, machine industrial, is currently reporting price/earnings growth of 1.2%. The company's EPS compares unfavorably with its industry's estimated average of $2.38.

What to Do Next:
Those are the latest numbers from Illinois Tool Works, including how the announcement compared to Wall Street estimates. Benzinga consistently provides earnings previews and recaps for major corporate events. Be sure to visit us next quarter for a full Illinois Tool Works preview.

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