Stanley Black & Decker, Inc. (SWK - Free Report) is slated to report third-quarter 2020 results on Oct 27, before market open.
The company delivered better-than-expected results in the last four quarters, with an earnings surprise of 9.64%, on average. Notably, its second-quarter 2020 earnings of $1.60 per share surpassed the Zacks Consensus Estimate of $1.27.
In the past three months, shares of the company gained 16.4% compared with the industry’s growth of 14.7%.
Let us delve deeper.
Key Factors & Estimates for Q3
The impacts of improved operating conditions for manufacturing companies in the third quarter — evident from a 39.8% year-over-year increase in industrial production in the U.S. and a rise of ISM Purchasing Managers' Index from 52.6% in June to 55.4% in September — are expected to get reflected in Stanley Black’s results.
Apart from this, increasing preference for products related to safety and health, and do-it-yourself applications as well as any growth investments in Tools & Storage, and Security segments are likely to have aided the company’s top line in the third quarter. Also, a focus on product innovation and a surge in business from the e-commerce platform are expected to have been tailwinds.
Acquisitions too have been benefiting the company over time, with contributions of 2% in both the second quarter and the first quarter. This trend might have continued in the third quarter as well. On the flip side, the lingering impacts of the pandemic-led adversities are anticipated to have hurt results.
The Zacks Consensus Estimate for revenues in the third quarter is pegged at $3,922 million, suggesting a 8% increase from the year-ago quarter’s reported number and 24.6% growth from the last reported quarter.
For the Security segment, the Zack Consensus Estimate for third-quarter sales is pegged at $442 million, indicating a 5.2% decrease from the year-ago reported figure and 2.1% growth sequentially. Further, sales estimates for the Tools & Storage segment are pegged at $2,924 million. This suggests growth of 15.4% from the year-ago reported number and a 33.1% increase from the previous quarter’s reported figure.
In addition, the company’s cost-saving measures, including those taken in April 2020 and October 2019, are expected to have yielded benefits and aided margins. However, a trend of adverse impacts of forex woes and tariffs are anticipated to get reflected in third-quarter results. Also, high debts have been concerning.
The Zack Consensus Estimate for the company’s third-quarter earnings is pegged at $2.67, indicating an increase of 25.3% from the year-ago reported figure and 66.9% from the previous quarter.
Earnings Whispers
Our proven model suggests an earnings beat for Stanley Black this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. The case with Stanley Black & Decker is shown below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Stanley Black has an Earnings ESP of +3.28%, with the Most Accurate Estimate of $2.76 above the Zacks Consensus Estimate of $2.67.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Stanley Black & Decker, Inc. (SWK - Free Report) is slated to report third-quarter 2020 results on Oct 27, before market open.
The company delivered better-than-expected results in the last four quarters, with an earnings surprise of 9.64%, on average. Notably, its second-quarter 2020 earnings of $1.60 per share surpassed the Zacks Consensus Estimate of $1.27.
In the past three months, shares of the company gained 16.4% compared with the industry’s growth of 14.7%.
Let us delve deeper.
Key Factors & Estimates for Q3
The impacts of improved operating conditions for manufacturing companies in the third quarter — evident from a 39.8% year-over-year increase in industrial production in the U.S. and a rise of ISM Purchasing Managers' Index from 52.6% in June to 55.4% in September — are expected to get reflected in Stanley Black’s results.
Apart from this, increasing preference for products related to safety and health, and do-it-yourself applications as well as any growth investments in Tools & Storage, and Security segments are likely to have aided the company’s top line in the third quarter. Also, a focus on product innovation and a surge in business from the e-commerce platform are expected to have been tailwinds.
Acquisitions too have been benefiting the company over time, with contributions of 2% in both the second quarter and the first quarter. This trend might have continued in the third quarter as well. On the flip side, the lingering impacts of the pandemic-led adversities are anticipated to have hurt results.
The Zacks Consensus Estimate for revenues in the third quarter is pegged at $3,922 million, suggesting a 8% increase from the year-ago quarter’s reported number and 24.6% growth from the last reported quarter.
For the Security segment, the Zack Consensus Estimate for third-quarter sales is pegged at $442 million, indicating a 5.2% decrease from the year-ago reported figure and 2.1% growth sequentially. Further, sales estimates for the Tools & Storage segment are pegged at $2,924 million. This suggests growth of 15.4% from the year-ago reported number and a 33.1% increase from the previous quarter’s reported figure.
In addition, the company’s cost-saving measures, including those taken in April 2020 and October 2019, are expected to have yielded benefits and aided margins. However, a trend of adverse impacts of forex woes and tariffs are anticipated to get reflected in third-quarter results. Also, high debts have been concerning.
The Zack Consensus Estimate for the company’s third-quarter earnings is pegged at $2.67, indicating an increase of 25.3% from the year-ago reported figure and 66.9% from the previous quarter.
Earnings Whispers
Our proven model suggests an earnings beat for Stanley Black this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. The case with Stanley Black & Decker is shown below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Stanley Black has an Earnings ESP of +3.28%, with the Most Accurate Estimate of $2.76 above the Zacks Consensus Estimate of $2.67.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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