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SWK Raises Dividend
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Stanley Black & Decker’s (SWK - Analyst Report) board of directors approved a 3.0% hike of the company’s quarterly dividend rate. The revised quarterly rate now stands at 34 cents per common share compared with 33 cents in the previous quarter, resulting in annual rate of $1.36 per common share. The dividend will be paid on September 21, to shareholders as of the close of business on September 3.
At the end of the first quarter of 2010, the company paid roughly $34.3 million in dividends. Cash and cash equivalents at the end of the quarter were $1,505.4 million and normalized net cash from operating activities was roughly $59.3 million.
New Britain, Connecticut – based, Stanley Black & Decker manufactures tools and engineered security solutions across the globe. The company embarks on a growth strategy of shifting its business portfolio toward favored growth markets through acquisitions and divestitures, which helps it in expanding its global business platform.
From the recently acquired Black & Decker, the company expects annual cost synergies of $350.0 million over three years of acquisition, with roughly $90 million to be realized in 2010. Also, from the ADT France acquisition, synergistic benefits are anticipated in 2011. The company expects EPS, excluding one-time items, to fall within the range of $3.10-$3.30 versus its prior guidance range of $3.00-$3.25.
However, realization of synergies from the company’s acquisitions is highly dependent on its ability to integrate them successfully within the stipulated time frame. Also, the company will spend roughly $400 million in total cost over three years to achieve synergies from its BDK acquisition. Any failure in integration will adversely impact the company’s future growth prospects.
Prime competitors of the company are Danaher Corp. (DHR), - Analyst Report Makita Corp. (MKTAY) and Snap-on Inc. (SNA - Analyst Report). We currently maintain our Neutral recommendation on the stock, supported by Zacks #3 (Hold) Rank.
At the end of the first quarter of 2010, the company paid roughly $34.3 million in dividends. Cash and cash equivalents at the end of the quarter were $1,505.4 million and normalized net cash from operating activities was roughly $59.3 million.
New Britain, Connecticut – based, Stanley Black & Decker manufactures tools and engineered security solutions across the globe. The company embarks on a growth strategy of shifting its business portfolio toward favored growth markets through acquisitions and divestitures, which helps it in expanding its global business platform.
From the recently acquired Black & Decker, the company expects annual cost synergies of $350.0 million over three years of acquisition, with roughly $90 million to be realized in 2010. Also, from the ADT France acquisition, synergistic benefits are anticipated in 2011. The company expects EPS, excluding one-time items, to fall within the range of $3.10-$3.30 versus its prior guidance range of $3.00-$3.25.
However, realization of synergies from the company’s acquisitions is highly dependent on its ability to integrate them successfully within the stipulated time frame. Also, the company will spend roughly $400 million in total cost over three years to achieve synergies from its BDK acquisition. Any failure in integration will adversely impact the company’s future growth prospects.
Prime competitors of the company are Danaher Corp. (DHR), - Analyst Report Makita Corp. (MKTAY) and Snap-on Inc. (SNA - Analyst Report). We currently maintain our Neutral recommendation on the stock, supported by Zacks #3 (Hold) Rank.
Read the full analyst report on SWK
Read the full analyst report on DHR
Read the full analyst report on MKTAY
Read the full analyst report on SNA
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