Illinois Tool Works reported Q1 net income of $1.54 per diluted share, up from $1.29 for the same period last year, and ahead of the Capital IQ consensus forecast of $1.45. Revenues for the quarter were $3.47 billion, up from $3.27 billion for the year-ago quarter, and surpassed the analyst forecast of $3.40 billion.
As a result of the results, Illinois Tool Works said it is raising its 2017 full-year guidance, and now expects earnings to be in the range of $6.20 to $6.40 per share, up from $6.00 to $6.20, on organic growth of 2% to 4%, up from 1.5% to 3.5%. Analysts are expecting FY17 EPS of $6.18 per share.
It also expects operating margin to exceed 23.5%, and free cash flow to exceed 100% of net income. The effective tax rate is expected to be approximately 29%, down from prior guidance of 29 to 30%, resulting in an EPS benefit of $0.04 per share.