Stanley Black & Decker Earnings Preview: What to Expect

New Britain, Connecticut-based Stanley Black & Decker, Inc. (SWK) provides hand tools, power tools, outdoor products, related accessories, engineered fastening systems, and several other items and services. With a market cap of $12.3 billion, SWK employs over 50,000 people and its operations span the Americas, Europe, and Asia. The company is set to unveil its fourth-quarter earnings before the market opens on Wednesday, Feb. 5.

Ahead of the event, analysts expect SWK to report a non-GAAP profit of $1.26 per share, up nearly 37% from $0.92 per share reported in the year-ago quarter. Furthermore, the company has surpassed Wall Street’s bottom-line projections in each of the past four quarters. Its adjusted EPS for the last reported quarter surged 16.2% year-over-year to $1.22, exceeding analysts’ estimates by 18.5%.

For the full fiscal 2024, its adjusted EPS is expected to surge by a notable 184.8% year-over-year to $4.13. While in fiscal 2025, its earnings are expected to increase 27.6% year-over-year to $5.27 per share.

SWK stock prices have plummeted 15.3% over the past 52 weeks, substantially underperforming the S&P 500 Index’s ($SPX) 22% gains and the Industrial Select Sector SPDR Fund’s (XLI) 18.5% returns during the same time frame.

Despite delivering better-than-expected earnings, shares of Stanley Black & Decker fell 8.8% after the release of its Q3 results on Oct. 29. The company’s strategic focus on accelerating operations and supply chain transformation to improve fill rates and better align inventory with customer demand significantly boosted profitability. Stanley Black & Decker reported an impressive 16.9% year-over-year growth in adjusted non-GAAP net earnings from continuing operations to $185 million which substantially outpaced Wall Street’s expectations.

However, the company faced a 5.1% year-over-year and a 6.8% quarter-on-quarter decline in net sales to $3.8 billion. This decrease was due to declining volumes, currency impacts, and the divestiture of the infrastructure business, which unsettled investor confidence.

The consensus opinion on SWK stock is neutral, with an overall “Hold” rating. Out of the 15 analysts covering the stock, five recommend a “Strong Buy,” eight suggest “Hold,” and two advise a “Strong Sell” rating. Its mean price target of $101.82 indicates a 25.9% upside potential from current price levels.

On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart

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