Illinois Tools Works posted 2010 first quarter earnings today, April 20th. Analysts expectations for first quarter were 52 cents a share to 60 cents a share. ITW was aligned with analysts expectations and achieved EPS of 58 cents share, excluding a tax adjustment of 4 cents per share related to new health care legislation and Medicare prescription drug subsidies. Excluding special items, adjusted earnings were 63 cents per share. ITW performed extremely well first quarter, especially when compared to Q1 2009 EPS of 2 cents a share.
ITW reported revenue for Q1 of 3.606 billion, 14.6% higher than 2009 Q1. The main increase in revenues was due to their automotive OEM, polymers and fluids, industrial packaging, and PC board fabrication segments.
Operating income rose 393 million to 483.9 million from Q1 2009. Income from continuing operations totaled 294.3 million compared to a loss of 8.0 million in 2009 and first quarter operating margins were 13.4 percent, which is 1050 basis points higher than the year ago period.
ITW has increased their outlook for 2010. For 2Q, the company is expecting earnings of .74 cents to .86 cents, which is assuming a 15-19% increase in revenue. For the full year, EPS is expected to be in the range of 2.72-3.08$, an increase from 2.39-2.89$
After ITW released earnings, their stock price hit a new 52 week high of 51.28$. In the after hours, ITW continued to rise and is currently trading at 50.71$.