Illinois Tool Works (NYSE: ITW) reported Q3 EPS of $2.02, $0.01 worse than the analyst estimate of $2.03. Revenue for the quarter came in at $3.6 billion versus the consensus estimate of $3.57 billion.

GUIDANCE:

Illinois Tool Works sees FY2021 EPS of $8.30-$8.50, versus the consensus of $8.69.

• ITW expects total revenue growth of 13 to 14 percent and organic growth in the range of 11 to 12 percent. Foreign currency translation impact at current foreign exchange rates is projected to contribute two percentage points to revenue growth. GAAP EPS guidance is updated to a range of $8.30 to $8.50, due to actual and anticipated lower auto production levels in Q3 and Q4 versus previous guidance. Raw material cost increases are expected to be offset with price on a dollar-for-dollar basis and therefore EPS neutral. Full year margin dilution impact from price/cost is expected to be approximately 150 basis points, offset by more than 200 basis points of volume leverage and a contribution from enterprise initiatives of more than 100 basis points. Operating margin is expected to be in the range of 23.5 to 24.5 percent, an increase of more than 100 basis points at the midpoint versus 2020. Free cash flow is expected to be approximately 90 percent of net income adjusted for one-time tax benefits. Guidance excludes any impact from the acquisition of the MTS Test & Simulation business.

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