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Stanley Black (SWK) Buys Newell Tools, Revises '17 Guidance
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Industrial tool maker Stanley Black & Decker, Inc. (SWK - Free Report) recently announced that it has completed the acquisition of Newell Tools, the tools business of Newell Brands, for approximately $1.95 billion in cash. The deal was originally announced in Oct 2016.
In the last one month, shares of the company yielded 3.16% return outpacing the 1.07% gain recorded by the Zacks categorized Machine Tools & Related Products industry.
As revealed, Newell Tools comprised industrial cutting, hand tool and power tool accessory brands, Irwin and Lenox as well as their associated power tool accessory and hand tool products.
We believe the Newell Tools acquisition will strengthen Stanley Black & Decker’s tools business worldwide. Also, the addition of Newell Tools’ manufacturing capabilities, distribution network and highly skilled workforce will work in its favor in the quarters ahead. The acquired assets are anticipated to be immediately accretive to earnings with incremental earnings of 24 cents per share expected in 2017. However, this accretion excludes restructuring and other deal and integration-related costs of $80 million, and $40 million of non-cash inventory step-up charges.
Combining the impact of earnings accretion from Newell Tools acquisition with roughly 8 cents earnings accretion from Craftsman Brand acquisition (completed on Mar 9) and 19 cents earnings dilution from disposition of Mechanical Security businesses (completed on Feb 23), Stanley Black & Decker revised its earnings guidance for 2017. Adjusted earnings are now projected to be in the range of $6.98−$7.18 per share versus the initial forecast of $6.85−$7.05.
Stanley Black & Decker, with $19.9 billion in market capitalization, currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the machinery industry include Sandvik AB (SDVKY - Free Report) , Actuant Corporation and Kennametal Inc. (KMT - Free Report) . While Sandvik AB sports a Zacks Rank #1 (Strong Buy), both Actuant Corporation and Kennametal carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sandvik AB’s earnings estimates for 2017 and 2018 have been revised upward over the last 60 days.
Actuant Corporation reported better-than-expected results in the last four quarters, with an average positive earnings surprise of 11.47%. Also, bottom-line expectations for fiscal 2018 have improved over the last 60 days.
Kennametal reported better-than-expected results in the last quarter, with an earnings surprise of 9.09%. Also, its earnings estimates for fiscal 2017 and fiscal 2018 improved in the last 60 days.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
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Stanley Black (SWK) Buys Newell Tools, Revises '17 Guidance
Industrial tool maker Stanley Black & Decker, Inc. (SWK - Free Report) recently announced that it has completed the acquisition of Newell Tools, the tools business of Newell Brands, for approximately $1.95 billion in cash. The deal was originally announced in Oct 2016.
In the last one month, shares of the company yielded 3.16% return outpacing the 1.07% gain recorded by the Zacks categorized Machine Tools & Related Products industry.
As revealed, Newell Tools comprised industrial cutting, hand tool and power tool accessory brands, Irwin and Lenox as well as their associated power tool accessory and hand tool products.
We believe the Newell Tools acquisition will strengthen Stanley Black & Decker’s tools business worldwide. Also, the addition of Newell Tools’ manufacturing capabilities, distribution network and highly skilled workforce will work in its favor in the quarters ahead. The acquired assets are anticipated to be immediately accretive to earnings with incremental earnings of 24 cents per share expected in 2017. However, this accretion excludes restructuring and other deal and integration-related costs of $80 million, and $40 million of non-cash inventory step-up charges.
Combining the impact of earnings accretion from Newell Tools acquisition with roughly 8 cents earnings accretion from Craftsman Brand acquisition (completed on Mar 9) and 19 cents earnings dilution from disposition of Mechanical Security businesses (completed on Feb 23), Stanley Black & Decker revised its earnings guidance for 2017. Adjusted earnings are now projected to be in the range of $6.98−$7.18 per share versus the initial forecast of $6.85−$7.05.
Stanley Black & Decker, Inc. Price and Consensus
Stanley Black & Decker, Inc. Price and Consensus | Stanley Black & Decker, Inc. Quote
Zacks Rank & Stocks to Consider
Stanley Black & Decker, with $19.9 billion in market capitalization, currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the machinery industry include Sandvik AB (SDVKY - Free Report) , Actuant Corporation and Kennametal Inc. (KMT - Free Report) . While Sandvik AB sports a Zacks Rank #1 (Strong Buy), both Actuant Corporation and Kennametal carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sandvik AB’s earnings estimates for 2017 and 2018 have been revised upward over the last 60 days.
Actuant Corporation reported better-than-expected results in the last four quarters, with an average positive earnings surprise of 11.47%. Also, bottom-line expectations for fiscal 2018 have improved over the last 60 days.
Kennametal reported better-than-expected results in the last quarter, with an earnings surprise of 9.09%. Also, its earnings estimates for fiscal 2017 and fiscal 2018 improved in the last 60 days.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>