Illinois Tool Works (NYSE: ITW) reported Q1 EPS of $1.90, $0.12 better than the analyst estimate of $1.78. Revenue for the quarter came in at $3.74 billion versus the consensus estimate of $3.69 billion.

• Raises guidance for 2018 after solid Q1 financial results
• GAAP EPS was $1.90, up 23% versus prior year
• Total revenue was $3.7 billion, an increase of 8%; organic growth was 3%
• Operating margin was 24.1%, an increase of 90 bps
• Operating income was up 12% to $903 million and after-tax ROIC was 27.7%
• Raising full year guidance by $0.15 at the midpoint, up 17% versus prior year

“We are off to a solid start in 2018,” said E. Scott Santi, Chairman and Chief Executive Officer. “Despite lower than expected auto builds impacting our Automotive OEM segment, we delivered three percent organic revenue growth which, along with strong execution on our enterprise initiatives and disciplined price/cost management, resulted in operating earnings growth of 12 percent year on year for the quarter. As we look ahead at the balance of the year, the combination of ITW’s resilient high quality business portfolio, positive underlying demand trends, and additional benefits from enterprise initiatives have the company well positioned for continued top and bottom line growth. As a result, we are raising our full year EPS guidance by $0.15 at the mid-point.”

GUIDANCE:

Illinois Tool Works sees FY2018 EPS of $7.60-$7.80, versus the consensus of $7.56.

For earnings history and earnings-related data on Illinois Tool Works (ITW) click here.