Stanley Black & Decker Inc. Earnings Cheat Sheet: Revenue Grows Again by Double-Digits

S&P 500 (NYSE:SPY) component Stanley Black & Decker Inc. (NYSE:SWK) reported its results for the third quarter. 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.

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Stanley Black & Decker Earnings Cheat Sheet for the Third Quarter

Results: Net income for the machine tools and accessories company rose to $155.3 million (92 cents per share) vs. $123.2 million (73 cents per share) in the same quarter a year earlier. This marks a rise of 26.1% from the year earlier quarter.

Revenue: Rose 11.3% to $2.64 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: SWK reported adjusted net income of $1.34 per share. By that measure, the company beat the mean estimate of $1.32 per share. It beat the average revenue estimate of $2.56 billion.

Quoting Management: Stanley Black & Decker’s President and CEO, John F. Lundgren, commented, “We are encouraged with the results our businesses continue to achieve in the midst of the current macroeconomic backdrop. With little to no market growth in many of the industries and developed regions where we have a presence, it is successful new product introductions and ongoing value propositions that have resulted in the market share gains crucial to our company’s success. Our revenues within the emerging markets continue to grow at a high rate, and with operating margins above line average, are providing a solid contribution to the company’s bottom line as well. Our strong cash position allowed us to acquire $350 million of our stock during the quarter, which was $100 million more than previously communicated, as the volatile stock market presented an incremental opportunity to execute upon this additional element of shareholder value creation.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 82.6%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose more than twofold from the year earlier quarter.

The company topped expectations last quarter after falling short of forecasts in the second quarter with net income of $1.18 versus a mean estimate of net income of $1.27 per share.

Looking Forward: Expectations for the company’s next quarter results are lower than they have been. Over the past sixty days, the average estimate for fourth quarter has fallen from $1.38 per share to $1.34. The average estimate for the fiscal year is now $5.20 per share, down from $5.29 sixty days ago.

Competitors to Watch: P & F Industries, Inc. (NASDAQ:PFIN), Snap-on Incorporated (NYSE:SNA), Home Depot (NYSE:HD) and Lowe’s (NYSE:LOW).

Investing Insights: Amazon.com has a Stock Chart Technical Analysts Dream About.

(Source: Xignite Financials)

 

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