Illinois Tool Works (NYSE:ITW) Margins Outlook Increases EPS Estimates

EPS estimates for Illinois Tool Works (NYSE:ITW) were lifted by FBR Capital on guidance from the company their margins on total revenue growth were higher than anticipated.

FBR said, "We are raising our 2010/2011/2012 estimates from $3.08/$3.55/$4.00 to $3.10/$3.85/$4.40 and raising our price target to $62 following upbeat outlook commentary at ITW’s annual outlook meeting Friday. Key positive surprises included 2011 expectations for 30%–35% incremental margins on total revenue growth (5%–7% organic and acquisitions) or significantly above our low-20s expectation, reflecting continued benefit from cost-cutting and volume leverage."

FBR maintains their "Outperform" rating on Illinois Tool Works, which closed Monday at $50.23, down $0.18, or 0.36 percent. They raised their price target on them to $62.

Volume for the day was up more than 25 percent over the daily 3-month average.