S&P 500 (NYSE:SPY) component Stanley Black & Decker, Inc. (NYSE:SWK) will unveil its latest earnings on Wednesday, July 18, 2012. Stanley Black & Decker supplies tools and engineered solutions for professional, industrial, construction, and do-it-yourself use, as well as security solutions for industrial and commercial applications.
Stanley Black & Decker, Inc. Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.52 per share, a rise of 28.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.57. Between one and three months ago, the average estimate moved down. It also has dropped from $1.55 during the last month. For the year, analysts are projecting profit of $5.77 per share, a rise of 10.1% from last year.
Past Earnings Performance: Last quarter, the company missed estimates by 4 cents, coming in at net income of $1.09 per share versus a mean estimate of profit of $1.13 per share. In the fourth quarter of the last fiscal year, the company beat estimates by 8 cents.
Investing Insights: Is TV the Next Bullish Catalyst for Apple’s Stock?
Stock Price Performance: Between April 17, 2012 and July 12, 2012, the stock price fell $19.48 (-24.7%), from $79.02 to $59.54. The stock price saw one of its best stretches over the last year between March 6, 2012 and March 13, 2012, when shares rose for six straight days, increasing 9.6% (+$7.06) over that span. It saw one of its worst periods between May 7, 2012 and May 15, 2012 when shares fell for seven straight days, dropping 6.4% (-$4.66) over that span.
A Look Back: In the first quarter, profit fell 23.3% to $121.8 million (72 cents a share) from $158.7 million (92 cents a share) the year earlier, missing analyst expectations. Revenue rose 11.4% to $2.65 billion from $2.38 billion.
Wall St. Revenue Expectations: Analysts predict a rise of 11.1% in revenue from the year-earlier quarter to $2.91 billion.
On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose 13.4% in the fourth quarter of the last fiscal year before climbing again in the first quarter.
Analyst Ratings: There are eight out of 12 analysts surveyed (66.7%) rating Stanley Black & Decker a buy.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.34 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company improved this liquidity measure from 1.32 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in current assets. Current assets increased 6.5% to $4.6 billion while liabilities rose by 5.2% to $3.44 billion.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.
(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
Don’t Miss These Hot Additional Stories: