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The Zacks Consensus Estimate for SWK’s second-quarter earnings has been revised about 1% downward in the past 60 days. However, SWK has an impressive surprise history, with its earnings having outperformed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 11.9%.
Let’s see how things are shaping up for Stanley Black this earnings season.
Key Factors and Estimates for Q2
Stanley Black is anticipated to have benefited from strength in housing, repair and remodeling end markets, and a recovery in the non-residential market and commercial construction markets in the second quarter. Robust demand for home & garden, and electrification products is likely to have been beneficial. Also, investments for capacity expansion, building strategic sourcing and factory automation are likely to have augmented its top-line performance in the to-be-reported quarter.
SWK’s December 2021 acquisitions of Excel Industries and MTD Holdings, which have boosted its channel opportunities, strengthened innovation capabilities and enhanced product offerings so far, are expected to have contributed to top-line growth.
However, supply-chain restrictions and increased raw material costs are expected to have adversely impacted margins and profitability in the second quarter. Also, the rising cost of sales, and selling, general and administrative expenses might have dented SWK’s bottom line in the to-be-reported quarter. Unfavorable movements in foreign currencies are likely to have affected Stanley Black’s overseas business in second-quarter 2022.
The Zacks Consensus Estimate for Stanley Black’s revenues is pegged at $4,765 million for the second quarter, suggesting a 10.8% increase from the year-ago quarter’s reported number. Earnings estimates are pegged at $2.14, indicating a decrease of 30.5% from the year-ago period’s reported figure.
Earnings Whispers
Our proven model does not conclusively predict 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. But this is not the case here, as you will see below.
Zacks Rank: Stanley Black currently carries a Zacks Rank #5 (Strong Sell).
Highlights of Q1 Earnings
Stanley Black’s earnings surpassed the Zacks Consensus Estimate by 25%, whereas sales lagged the same 3.1% in first-quarter 2022. In the reported quarter, SWK’s adjusted earnings were $2.10 per share, surpassing the Zacks Consensus Estimate of $1.68. The bottom line decreased 32.9% from the year-ago quarter’s figure of $3.13 due to lower volume, supply-chain restrictions and cost inflation. SWK’s net sales were $4,448 million, reflecting year-over-year growth of 19.5%.
Stocks to Consider
Here are some companies worth considering, as according to our model, these have the right combination of elements to beat on earnings this reporting cycle.
MRC Global Inc. (MRC - Free Report) has an Earnings ESP of +30.27% and a Zacks Rank of 1. MRC is slated to release second-quarter 2022 financial numbers on Aug 8.
In the past 60 days, MRC’s earnings estimates have increased 13.6% for the second quarter of 2022. MRC Global’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 140.8%.
Crane Holdings (CR - Free Report) has an Earnings ESP of +6.98% and a Zacks Rank #2. CR is slated to release second-quarter 2022 financial numbers on Jul 25.
In the past 60 days, CR’s earnings estimates have increased 4.1% for the second quarter of 2022. Crane Holdings’ earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 22.2%.
Zebra Technologies (ZBRA - Free Report) has an Earnings ESP of +2.15% and a Zacks Rank #3. ZBRA is scheduled to release second-quarter 2022 earnings numbers on Aug 2.
In the past 60 days, ZBRA’s earnings estimates have been unchanged for the second quarter of 2022. Zebra Technologies’ earnings trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average being 8.8%.
Image: Bigstock
Stanley Black (SWK) to Post Q2 Earnings: What's in Store?
Stanley Black & Decker, Inc. (SWK - Free Report) is scheduled to release second-quarter 2022 results on Jul 28, before market open.
The Zacks Consensus Estimate for SWK’s second-quarter earnings has been revised about 1% downward in the past 60 days. However, SWK has an impressive surprise history, with its earnings having outperformed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 11.9%.
Let’s see how things are shaping up for Stanley Black this earnings season.
Key Factors and Estimates for Q2
Stanley Black is anticipated to have benefited from strength in housing, repair and remodeling end markets, and a recovery in the non-residential market and commercial construction markets in the second quarter. Robust demand for home & garden, and electrification products is likely to have been beneficial. Also, investments for capacity expansion, building strategic sourcing and factory automation are likely to have augmented its top-line performance in the to-be-reported quarter.
SWK’s December 2021 acquisitions of Excel Industries and MTD Holdings, which have boosted its channel opportunities, strengthened innovation capabilities and enhanced product offerings so far, are expected to have contributed to top-line growth.
However, supply-chain restrictions and increased raw material costs are expected to have adversely impacted margins and profitability in the second quarter. Also, the rising cost of sales, and selling, general and administrative expenses might have dented SWK’s bottom line in the to-be-reported quarter. Unfavorable movements in foreign currencies are likely to have affected Stanley Black’s overseas business in second-quarter 2022.
The Zacks Consensus Estimate for Stanley Black’s revenues is pegged at $4,765 million for the second quarter, suggesting a 10.8% increase from the year-ago quarter’s reported number. Earnings estimates are pegged at $2.14, indicating a decrease of 30.5% from the year-ago period’s reported figure.
Earnings Whispers
Our proven model does not conclusively predict 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. But this is not the case here, as you will see 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 +1.40% as the Most Accurate Estimate of $2.17 is above the Zacks Consensus Estimate of $2.14.
Stanley Black & Decker, Inc. Price, Consensus and EPS Surprise
Stanley Black & Decker, Inc. price-consensus-eps-surprise-chart | Stanley Black & Decker, Inc. Quote
Zacks Rank: Stanley Black currently carries a Zacks Rank #5 (Strong Sell).
Highlights of Q1 Earnings
Stanley Black’s earnings surpassed the Zacks Consensus Estimate by 25%, whereas sales lagged the same 3.1% in first-quarter 2022. In the reported quarter, SWK’s adjusted earnings were $2.10 per share, surpassing the Zacks Consensus Estimate of $1.68. The bottom line decreased 32.9% from the year-ago quarter’s figure of $3.13 due to lower volume, supply-chain restrictions and cost inflation. SWK’s net sales were $4,448 million, reflecting year-over-year growth of 19.5%.
Stocks to Consider
Here are some companies worth considering, as according to our model, these have the right combination of elements to beat on earnings this reporting cycle.
MRC Global Inc. (MRC - Free Report) has an Earnings ESP of +30.27% and a Zacks Rank of 1. MRC is slated to release second-quarter 2022 financial numbers on Aug 8.
In the past 60 days, MRC’s earnings estimates have increased 13.6% for the second quarter of 2022. MRC Global’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 140.8%.
Crane Holdings (CR - Free Report) has an Earnings ESP of +6.98% and a Zacks Rank #2. CR is slated to release second-quarter 2022 financial numbers on Jul 25.
In the past 60 days, CR’s earnings estimates have increased 4.1% for the second quarter of 2022. Crane Holdings’ earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 22.2%.
Zebra Technologies (ZBRA - Free Report) has an Earnings ESP of +2.15% and a Zacks Rank #3. ZBRA is scheduled to release second-quarter 2022 earnings numbers on Aug 2.
In the past 60 days, ZBRA’s earnings estimates have been unchanged for the second quarter of 2022. Zebra Technologies’ earnings trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average being 8.8%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.