Stanley Black & Decker Inc. Earnings: Double-Digit Revenue Growth Continues

S&P 500 (NYSE:SPY) component Stanley Black & Decker Inc. (NYSE:SWK) reported higher profit for the fourth quarter as revenue showed growth. 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 Fourth Quarter

Results: Net income for Stanley Black & Decker Inc. rose to $165.3 million (99 cents per share) vs. $137.8 million (81 cents per share) in the same quarter a year earlier. This marks a rise of 20% from the year earlier quarter.

Revenue: Rose 17% to $2.8 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: SWK reported adjusted net income of $1.36 per share. By that measure, the company beat the mean estimate of $1.29 per share.

Quoting Management: President and CEO, John F. Lundgren, commented, “As we look back on 2011, we are proud of all we accomplished in the face of a choppy and unpredictable global macroeconomic backdrop. Organic revenues increased 4% from the 2010 pro forma base as a testament to our new product innovations, growing presence in emerging markets and early-stage successes with our revenue synergy projects. Earnings per share increased 26% despite tremendous pressure from raw material inflation, in part due to the achievement of the $200 million cost synergy target we had set for the year and the continued success of the Black & Decker integration. Increasing shareholder value remained at the forefront of our strategy as we increased our dividend 20% and implemented a $350 million repurchase of shares. Looking ahead to 2012, our playbook remains the same and we will continue to execute on our stated strategy and goals as we gain traction along our trajectory to achieve the mid-decade vision we laid out to be a $15 billion diversified industrial company with operating margins greater than 15%.”

Key Stats:

The company fell short of estimates last quarter after beating the mark the quarter before with net income of $1.34 versus a mean estimate of net income of $1.32 per share.

Looking Forward: Analysts have a more positive outlook about the company’s results for next quarter. The average estimate for first quarter of the next fiscal year is $1.27 per share, an increase from $1.25 sixty days ago. For the fiscal year, the average estimate has moved up from $5.17 a share to $5.18 over the last thirty days.

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

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com