Stanley Black & Decker Earnings: Here’s Why Investors Don’t Like These Results

Stanley Black & Decker, Inc. (NYSE:SWK) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.28%.

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Stanley Black & Decker, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 5.1% to $1.03 in the quarter versus EPS of $0.98 in the year-earlier quarter.

Revenue: Decreased 6.25% to $2.49 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Stanley Black & Decker, Inc. reported adjusted EPS income of $1.03 per share. By that measure, the company beat the mean analyst estimate of $0.96. It missed the average revenue estimate of $2.58 billion.

Quoting Management: Stanley Black & Decker’s Chairman and CEO, John F. Lundgren, commented, “Despite a far from robust external environment, we remain confident in our ability to achieve our full year 2013 EPS, sales and free cash flow targets while continuing to invest in organic revenue growth. Profitability in our CDIY business continues to improve, and we expect to realize increased sales in this segment going forward as a result of new product introductions and customer listings as well as our increasing presence in emerging markets.”

Key Stats (on next page)…

Revenue increased 28.41% from $1.94 billion in the previous quarter. EPS decreased 24.82% from $1.37 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.44 to a profit $1.4. For the current year, the average estimate has moved down from a profit of $5.6 to a profit of $5.49 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)