Illinois Tool Works Raises FY18 Earnings Outlook - Quick Facts

(RTTNews) - While reporting its fourth-quarter financial results, Illinois Tool Works Inc. (ITW) raised its earnings per share outlook for fiscal 2018 by $0.40 at the midpoint, citing the benefits of a reduction in the tax rate.

For fiscal 2018, the company now expects reported earnings in a range of $7.45 to $7.65 per share, with organic growth of 3 percent to 4 percent.

On average, analysts polled by Thomson Reuters expect the company to earn $7.34 per share for the year. Analysts' estimates typically exclude special items.

ITW forecasts first quarter 2018 reported earnings in a range of $1.80 to $1.90 per share, with organic growth of 3 percent to 4 percent. The Street expects the company to earn $1.75 per share for the quarter.

Subject to formal board approval, ITW said it expects to accelerate its previously announced plans to increase its dividend pay-out ratio from 43 percent to approximately 50 percent of free cash flow on a run rate basis in August of 2018.