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Illinois Tool Works profit more than doubles to beat expectations, but stock falls

Illinois Tool Works Inc. (ITW) reported second-quarter that more than doubled and beat expectations, and raised the full-year outlook, as the all business segments saw double-digit organic revenue growth in the face of rising raw materials costs and supply chain challenges. Meanwhile, the industrial products and equipment maker's stock fell 1.5% in premarket trading. Net income rose to $775 million, or $2.45 a share, from $319 million, or $1.01 a share, in the year-ago period. The FactSet consensus for earnings per share was $2.09. Revenue rose 43.4% to $3.68 billion, topping the FactSet consensus of $3.56 billion. "In the quarter, price recovery actions essentially offset raw material cost increases on a dollar-for-dollar basis," the company stated. For 2021, the company raised its EPS guidance range to $8.55 to $8.95 from $8.20 to $8.60. The stock has slippped 0.9% over the past three months through Thursday while the S&P 500 has gained 5.7%.

-Tomi Kilgore

 

(END) Dow Jones Newswires

07-30-21 0818ET

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