Illinois Tool Works Lifts FY25 Adj. Earnings View After Q2 Beats Street - Update

(RTTNews) - Illinois Tool Works Inc (ITW), while reporting lower net profit, but higher earnings per share and revenues in its second quarter, on Wednesday raised its fiscal 2025 outlook for adjusted earnings.

In the pre-market activity on the NYSE, Illinois Tool Works shares were losing around 0.2 percent to trade at $258.99.

For fiscal 2025, the company now expects earnings in the range of $10.35 to $10.55 per share, a growth of $0.10 or one percent at the midpoint from previous estimate of $10.15 to $10.55 per share

The Wall Street analysts on average expect the company to report earnings of $10.30 per share. Analysts' estimates typically exclude special items.

The company is projecting revenue growth of 1 to 3 percent and organic growth of flat to 2 percent based on current levels of demand. The outlook is adjusted for on-going pricing actions that are projected to offset tariff cost impacts and current foreign exchange rates.

Operating margin is projected to be in the range of 26 to 27 percent as enterprise initiatives are expected to contribute 100 basis points or more.

In the second quarter, Illinois Tool Works' net income dropped to $755 million from $759 million last year. However, earnings per share grew to $2.58 from $2.54 a year ago.

The company's revenue for the period rose 0.6% to $4.053 billion from $4.027 billion last year.

Analysts estimated earnings of $2.56 per share on revenues of $4.02 billion for the quarter.

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