ITW's Strong First Quarter No Surprise; Maintaining Our Fair Value Estimate

Narrow-moat-rated ITW had a solid first quarter, but nothing in its latest results materially alters our long-term view. While management raised its top-line and EPS guidance, we were already modeling at the top end of ITW’s 2022 forecast. We made some modest adjustments, including raising our full-year organic revenue outlook by a percentage point to 10% and bringing down our full-year margin expectations by 40 basis points to 24.6%. One could argue that top-line guidance seems a bit conservative, but we remain within guidance, given the current economic uncertainty.