Stanley Black & Decker Reports Earnings

Investing.com — Stanley Black & Decker (NYSE:SWK) shares dropped roughly 3% in premarket trading Tuesday after the company issued a soft earnings outlook for the full fiscal 2024 and missed Q3 revenue estimates.

Q3 Earnings Overview

• Earnings Per Share (EPS): $1.22 (Consensus: $1.05)
• Revenue: $3.75 billion (Expected: $3.8 billion)

Segment Performance

• Tools & Outdoor Segment Sales: $3.26 billion (Estimate: $3.31 billion)
• Industrial Sales: $488 million (Expected: $490.6 million)

Free Cash Flow

• Free Cash Flow: $199.3 million (Anticipated: $252.5 million)

Gross Margin

Stanley Black & Decker reported a Q3 gross margin of 30.5%, an increase of 290 basis points year-over-year.

Patrick D. Hallinan, Executive Vice President and CFO, stated, "Our gross margin meaningfully expanded in the third quarter versus both the prior year quarter and the first half of 2024, driven by the disciplined execution of our supply chain transformation, and we remain on track to achieve an approximately 30% adjusted gross margin for the full year."

He added, "Our ability to deliver approximately $200 million of free cash flow year-to-date supported our capital allocation priorities, including our dividend and debt reduction, along with reinvestment in growth initiatives."

Outlook

Looking ahead, the company expects full-year 2024 earnings per share in the range of $3.90 to $4.30, compared to the analyst consensus of $4.20.