Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Illinois Tool Works Inc’s (ITW - Analyst Report) board of directors recently authorized the company to buyback approximately $4 billion of common shares, representing roughly 70 million shares based on the May 5 closing share price. No time frame was specified for the execution of the buyback program.

The buyback program is in addition to the company’s existing $3.0 billion plan authorized in August 2007, of which $870 million still remains pending. Besides, the board of directors declared to pay a 34 cent per share of quarterly dividend on July 12 to shareholders as on record June 30.

Illinois Tool Works remains committed to returning value to shareholders via dividend payments and share buybacks. Exiting the first quarter 2011, the company paid roughly $169.2 million of dividends to shareholders; disbursed $636.2 million in the fiscal year 2010 and bought back shares worth $350 million.

Illinois Tool Works is one of the leading manufacturers of industrial products and equipment. We believe Illinois Tool stands at an advantageous position to grow in the quarters ahead as evident from the company’s promising EPS guidance of $4.16-$4.34, with mid-point up 40% year over year and the revenue growth expectation of 16%-18%.

For the second quarter of fiscal 2011, Illinois Tool Works expects EPS to be in a range of $0.99-$1.05, based on total revenue growth expectations in the range of 17%–20%.

It is anticipated that near-term results would be largely influenced by the strengthening end markets, restructuring benefits and share buybacks, offset partially by incremental international sales carrying lower margins compared with domestic sales. Over the medium to long term, prime driving catalysts will include a strong acquisition pipeline and recovery in economic conditions.

The company, operating through 800 business units in 57 countries, is one of the leading manufacturers of industrial products and equipment. The company’s chief competitors include Cooper Industries plc , General Electric Co. (GE - Analyst Report), and Manitowoc Co. Inc. (MTW - Analyst Report).

We currently maintain an Outperform recommendation on the stock.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GROUP DXYN 15.84 +7.90%
BOFL HOLDING BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%