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Stanley Black (SWK) to Post Q1 Earnings: Is a Beat in Store?
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Stanley Black & Decker, Inc. (SWK - Free Report) is scheduled to release first-quarter 2022 results on Apr 28, before market open.
The company reported better-than-expected results in the last four quarters, the earnings surprise being 11.22%, on average. In the last reported quarter, the company’s earnings of $2.14 surpassed the Zacks Consensus Estimate of $2.06 by 3.88%.
Image Source: Zacks Investment Research
In the past three months, shares of Stanley Black have lost 19.2% compared with the industry’s decline of 14.3%.
Key Factors
Stanley Black is expected to have benefited from solid product offerings, strength in the housing, repair and remodeling market, as well as recovery in the non-residential market in the first quarter. Healthy demand for home & garden and electrification products is likely to have augmented its top-line performance. Also, investments for capacity expansion, focus on operational execution and effective pricing actions are likely to have been beneficial.
The buyouts were accretive to the company’s sales in fourth-quarter 2021. This trend is likely to have continued in the to-be-reported quarter as well, given strength across the company’s acquired assets of Excel Industries and MTD Holdings (December 2021). The transaction has been boosting channel opportunities and strengthening innovation capabilities and product offerings for Stanley Black. It’s worth noting that in fourth quarter, the Excel and MTD buyouts enhanced the company’s Tools & Storage segment’s sales by 7%.
However, SWK has been experiencing the adverse impacts of cost inflation and supply-chain restrictions over the past few quarters. Commodity inflation, labor problems and other higher cost-related headwinds are expected to have adversely impacted margins and profitability in the first quarter.
Given the company’s extensive geographic presence, its operations are subject to global economic, political risks and forex woes. In the fourth quarter, foreign currency translation had a negative impact of 1% on sales. A stronger U.S. dollar might have hurt Stanley Black’s overseas business in first-quarter 2022.
The Zacks Consensus Estimate for Stanley Black’s revenues is pegged at $4,588 million for the first quarter, suggesting a 9.3% increase from the year-ago quarter’s reported number and 12.8% growth from the previous quarter’s reported figure. Earnings estimates are pegged at $1.68, indicating a decrease of 46.3% from the year-ago reported figure and a 21.5% fall from the previous quarter’s reported number.
On a segmental basis, the Zacks Consensus Estimate for the Tools & Storage segment’s revenues is pegged at $3,921 million, indicating a 28% increase from the year-ago reported figure and 16.3% growth sequentially. The consensus estimate for Industrial’s first-quarter revenues is pegged at $650 million, suggesting a year-over-year decrease of 1.2% and sequential growth of 6.5%.
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 chances of beating estimates. This is exactly the case with Stanley Black as shown below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Stanley Black has an Earnings ESP of +0.18% as the Most Accurate Estimate of $1.69 is above the Zacks Consensus Estimate of $1.68.
Stanley Black & Decker, Inc. Price and EPS Surprise
Zacks Rank: Stanley Black currently carries a Zacks Rank #3.
Other Key Picks
Here are some other companies that you may want to consider as, according to our model, these too have the right combination of elements to beat on earnings this reporting cycle.
Chart Industries, Inc. (GTLS - Free Report) has an Earnings ESP of +9.16% and a Zacks Rank of 3 at present. GTLS delivered a trailing four-quarter earnings surprise of 2.9%, on average.
Earnings estimates of Chart Industries have decreased 3.2% for 2022 in the past 60 days. Its shares have gained 37.4% in the past three months.
Eaton Corporation plc (ETN - Free Report) has an Earnings ESP of +0.85% and a Zacks Rank of 3, currently. ETN delivered a trailing four-quarter earnings surprise of 7%, on average.
Earnings estimates of Eaton have decreased 0.7% for 2022 in the past 60 days. Its shares have declined 7.1% in the past three months.
AGCO Corporation (AGCO - Free Report) has an Earnings ESP of +0.93% and a Zacks Rank of 3, currently. Its earnings surprise in the last four quarters was 56.7%, on average.
In the past 60 days, AGCO’s earnings estimates have decreased 0.7% for 2022. The stock has rallied 10.3% in the past three months.
Image: Bigstock
Stanley Black (SWK) to Post Q1 Earnings: Is a Beat in Store?
Stanley Black & Decker, Inc. (SWK - Free Report) is scheduled to release first-quarter 2022 results on Apr 28, before market open.
The company reported better-than-expected results in the last four quarters, the earnings surprise being 11.22%, on average. In the last reported quarter, the company’s earnings of $2.14 surpassed the Zacks Consensus Estimate of $2.06 by 3.88%.
Image Source: Zacks Investment Research
In the past three months, shares of Stanley Black have lost 19.2% compared with the industry’s decline of 14.3%.
Key Factors
Stanley Black is expected to have benefited from solid product offerings, strength in the housing, repair and remodeling market, as well as recovery in the non-residential market in the first quarter. Healthy demand for home & garden and electrification products is likely to have augmented its top-line performance. Also, investments for capacity expansion, focus on operational execution and effective pricing actions are likely to have been beneficial.
The buyouts were accretive to the company’s sales in fourth-quarter 2021. This trend is likely to have continued in the to-be-reported quarter as well, given strength across the company’s acquired assets of Excel Industries and MTD Holdings (December 2021). The transaction has been boosting channel opportunities and strengthening innovation capabilities and product offerings for Stanley Black. It’s worth noting that in fourth quarter, the Excel and MTD buyouts enhanced the company’s Tools & Storage segment’s sales by 7%.
However, SWK has been experiencing the adverse impacts of cost inflation and supply-chain restrictions over the past few quarters. Commodity inflation, labor problems and other higher cost-related headwinds are expected to have adversely impacted margins and profitability in the first quarter.
Given the company’s extensive geographic presence, its operations are subject to global economic, political risks and forex woes. In the fourth quarter, foreign currency translation had a negative impact of 1% on sales. A stronger U.S. dollar might have hurt Stanley Black’s overseas business in first-quarter 2022.
The Zacks Consensus Estimate for Stanley Black’s revenues is pegged at $4,588 million for the first quarter, suggesting a 9.3% increase from the year-ago quarter’s reported number and 12.8% growth from the previous quarter’s reported figure. Earnings estimates are pegged at $1.68, indicating a decrease of 46.3% from the year-ago reported figure and a 21.5% fall from the previous quarter’s reported number.
On a segmental basis, the Zacks Consensus Estimate for the Tools & Storage segment’s revenues is pegged at $3,921 million, indicating a 28% increase from the year-ago reported figure and 16.3% growth sequentially. The consensus estimate for Industrial’s first-quarter revenues is pegged at $650 million, suggesting a year-over-year decrease of 1.2% and sequential growth of 6.5%.
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 chances of beating estimates. This is exactly the case with Stanley Black as shown below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Stanley Black has an Earnings ESP of +0.18% as the Most Accurate Estimate of $1.69 is above the Zacks Consensus Estimate of $1.68.
Stanley Black & Decker, Inc. Price and EPS Surprise
Stanley Black & Decker, Inc. price-eps-surprise | Stanley Black & Decker, Inc. Quote
Zacks Rank: Stanley Black currently carries a Zacks Rank #3.
Other Key Picks
Here are some other companies that you may want to consider as, according to our model, these too have the right combination of elements to beat on earnings this reporting cycle.
Chart Industries, Inc. (GTLS - Free Report) has an Earnings ESP of +9.16% and a Zacks Rank of 3 at present. GTLS delivered a trailing four-quarter earnings surprise of 2.9%, on average.
Earnings estimates of Chart Industries have decreased 3.2% for 2022 in the past 60 days. Its shares have gained 37.4% in the past three months.
Eaton Corporation plc (ETN - Free Report) has an Earnings ESP of +0.85% and a Zacks Rank of 3, currently. ETN delivered a trailing four-quarter earnings surprise of 7%, on average.
Earnings estimates of Eaton have decreased 0.7% for 2022 in the past 60 days. Its shares have declined 7.1% in the past three months.
AGCO Corporation (AGCO - Free Report) has an Earnings ESP of +0.93% and a Zacks Rank of 3, currently. Its earnings surprise in the last four quarters was 56.7%, on average.
In the past 60 days, AGCO’s earnings estimates have decreased 0.7% for 2022. The stock has rallied 10.3% in the past three months.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.