Industrial products maker Illinois Tool Works Inc. (ITW) reaffirmed its fourth-quarter earnings forecast on Monday, sending its shares higher.
The Glenview, Illinois-based company said it still expects fourth-quarter earnings from continuing operations of 54 cents to 66 cents per share, with implied revenue rising 1% to 5% sequentially from the third quarter.
On average, Wall Street analysts expect earnings of 62 cents per share for the fourth quarter.
Illinois Tool Works shares rose $1.54, or 3.2%, in morning trading Monday.
The Bottom Line
We have avoided shares of ITW since our early June coverage began last year, and the shares were trading at $50.16. The company has a 2.53% dividend yield, based on Friday's closing stock price of $48.98.
The stock has technical support in the $42-$45 price area. If the shares can firm up, we see overhead resistance around the $50-$52 price levels. We would remain on the sidelines for now.
Illinois Tool Works Inc. (ITW) is not recommended at this time, holding a Dividend.com DARS Rating of 3.4 out of 5 stars.
