Stanley Black & Decker Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Stanley Black & Decker Inc. (NYSE:SWK) will unveil its latest earnings on Monday, October 17, 2011. 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 $1.34 per share, a rise of 38.1% 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 $1.44. Between one and three months ago, the average estimate moved down. It also has dropped from $1.37 during the last month. Analysts are projecting profit to rise by 27.4% versus last year to $5.25.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the second quarter, the company reported profit of $1.18 per share versus a mean estimate of net income of $1.27 per share. In the first quarter, the company beat estimates by 8 cents.

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Wall St. Revenue Expectations: On average, analysts predict $2.56 billion in revenue this quarter, a rise of 8% from the year ago quarter. Analysts are forecasting total revenue of $10.27 billion for the year, a rise of 22.1% from last year’s revenue of $8.41 billion.

Analyst Ratings: six out of nine analysts surveyed (66.7%) have a buy rating on Stanley Black & Decker.. This is below the mean analyst rating of four competitors, which average 100% buy ratings. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

A Look Back: In the second quarter, profit rose more than fourfold to $197.3 million ($1.14 a share) from $45.8 million (28 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 10.9% to $2.62 billion from $2.37 billion.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of more than twofold, 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.

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

Stock Price Performance: During July 18, 2011 to October 11, 2011, the stock price had fallen $12.20 (-17.9%) from $68.16 to $55.96. The stock price saw one of its best stretches over the last year between June 24, 2011 and July 7, 2011 when shares rose for nine-straight days, rising 8.7% (+$6.01) over that span. It saw one of its worst periods between September 15, 2011 and September 22, 2011 when shares fell for six-straight days, falling 16.1% (-$9.19) over that span. Shares are down $9.74 (-14.8%) year to date.

(Source: Xignite Financials)

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