Tom Reese/Paul Rubillo, Dividend.com
Illinois Tool Works (ITW) just announced it is cutting its fourth-quarter and fiscal 2008 earnings per share forecast, citing the weak economy, the rising dollar and higher-than-expected restructuring costs.
The company sees its EPS next quarter coming in a range of 44-52 cents per share, below its previous forecast of 74 cents to 82 cents per share. The full-year EPS is now expected to be in a range of $2.94 to $3.02. The company's prior forecast was for a profit of $3.24-$3.32 per share.
The Bottom Line
We have avoided shares of ITW since our early June coverage began, and the shares were trading at $50.16. The company has a 3.83% dividend yield, based on Friday's closing stock price of $32.39. We would look for technical support in the $25-26 area if the shares continue to weaken. For now, we would look eleswhere for better investment opportunities.
Illinois Tool Works (ITW) is not recommended at this time, holding a Dividend.com Rating of 3.3 out of 5 stars.
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