Illinois Tool Works reported their Q4 earnings and the earnings per share were $0.79 versus the $0.80 predicted by the analysts. The company's fourth-quarter profits fell by 23% as prior year. The decrease was primarily due to a big tax cut recorded in 2009. The last year tax benefit gave an extra 37 cents boost to EPS. For the whole year the company earned a total of $3.03 per share or a total of $1.53 billion compared to $1.49 per share and $947 million in 2009.
Even though the profits decreased the revenue for the fourth quarter was up by 11%. The best preforming segments were the Power Systems and Electronics which contribute almost 23% growth in revenue, and Welding Equipment increased their revenue by 18%. The total revenue for the year was $15.87 billion from $13.88 billion in 2009.
The volume of trades for the day was double the daily average, and despite not beating the analyst estimates the stock the stock closed the day with only a loss of 1.3% or $0.70.
The company is very optimistic on their first quarter earnings prediction which are higher then the estimates on the street. The company predicted 12% to 15% earnings growth for the first quarter, which will result in 81 cents to 87 cents EPS. Analysts predict earnings to be 76 cents per share a 10.6% growth.