Illinois Tool Works Inc. (NYSE: ITW) early Monday posted better than expected first quarter earnings results and lifted its 2017 profit outlook, as it continues to improve margins for its products.

Written by StockNews.com

The Glenview, IL-based diversified manufacturer reported Q1:

• earnings per share (EPS) of $1.54, which may not be comparable to the Wall Street consensus estimate of $1.45,
• revenues rose 6.0% from last year to $3.47 billion, topping analysts’ view for $3.4 billion.

Looking ahead...

• ITW expects second quarter EPS between $1.55 and $1.65, which straddles the current consensus estimate of $1.60 [and,] for the full year, Illinois Tool Works forecast 2017 EPS of $6.20 to $6.40, while analysts are looking for $6.19 per share for the year. That’s up from prior guidance of $6.00 to $6.20.

E. Scott Santi, Chairman and Chief Executive Officer said via press release:

“Our record results in the first quarter reflect strong execution across the company and further progress in our efforts to leverage ITW’s highly differentiated and proprietary business model to drive solid growth with best-in-class margins and returns.

We are off to a strong start in 2017 and the company is well-positioned to deliver continued progress and differentiated performance through the balance of 2017 and beyond.”

Illinois Tool Works Inc. shares rose $2.13 (+1.58%) in premarket trading Monday. Year-to-date, ITW has gained 10.68%, versus a 5.40% rise in the benchmark S&P 500 index during the same period.

ITW currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #4 of 55 stocks in the Industrial – Machinery category.