Another quarter, another three months of margin expansion for Illinois Tool Works. After a difficult end to 2015 prompting reduced earnings guidance, management has turned momentum around and for the second quarter in a row has raised its guidance for full-year earnings per share. In truth, the guidance hike is more about internal execution and margin optimism than an improvement in the revenue outlook. That said, it's only really the welding segment that's disappointing right now; elsewhere there are signs of a growth recovery in the engineering-equipment manufacturer's end markets. Let's take a closer look at a nuanced quarter that needs some careful explaining.
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