We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Stanley Black (SWK) Q1 Earnings & Revenues Miss Estimates
Read MoreHide Full Article
Stanley Black & Decker, Inc. (SWK - Free Report) reported mixed first-quarter 2023 results. SWK’s earnings beat the Zacks Consensus Estimate by 43.8%. However, sales missed the same by 1.8%.
In the reported quarter, SWK incurred a loss of 41 cents per share, narrower than the Zacks Consensus Estimate of a loss of 73 cents per share. Our estimate for first-quarter adjusted earnings was a loss of 76 cents per share. The bottom line decreased 119.5% from the year-ago quarter’s $2.10.
Revenue Details
In the quarter under review, Stanley Black’s net sales were $3,931.8 million, reflecting a year-over-year decline of 11.6%. The results benefited 2% from favorable pricing. Foreign currency translation had an adverse impact of 2%, divestitures had a negative impact of 1% and lower volume affected sales 11%.
SWK’s top line missed the Zacks Consensus Estimate of $4,002 million. Our estimate for net sales in the reported quarter was $3,939.1 million.
Stanley Black reports net sales under two segments, namely Tools & Outdoor and Industrial. The segmental information is briefly discussed below:
Revenues from the Tools & Outdoor segment totaled $3,315.4 million, decreasing 12.8% year over year. Our estimate for segmental revenues was $3,342.0 million. Pricing added 2% to sales growth, while adverse foreign-currency translations lowered sales 2%. Lower volumes affected 13%.
Revenues from the Industrial segment grossed $616.4 million, decreasing 4.7% year over year. Our estimate for segmental revenues was $597.0 million. The segment gained 5% from effective pricing. Forex woes had a negative impact of 3% and lower volumes had a negative effect of 2%.
Stanley Black & Decker, Inc. Price, Consensus and EPS Surprise
In the reported quarter, Stanley Black’s cost of sales decreased 1.5% year over year to $3,096.3 million. The metric represented 78.8% of the quarter’s net sales, compared with 70.6% in the year-ago quarter. The gross profit decreased 36% to $835.5 million. The gross margin decreased 810 basis points (bps) to 21.2%.
Selling, general and administrative expenses decreased 14.1% year over year to $825.1 million. The metric represented 21% of net sales in the reported quarter, compared with 21.6% in the year-ago period. Operating profit was $10.4 million in the quarter, compared with $345.1 million reported in the year-ago quarter. The margin declined 700 bps to 0.3%.
Balance Sheet and Cash Flow
While exiting the first quarter, Stanley Black had cash and cash equivalents of $387.6 million, down 2% from $395.6 million reported at the end of fourth-quarter 2022. The long-term debt balance increased 14% to $6,101.1 million from $5,352.9 million reported at the end of fourth-quarter 2022.
In the first three months of 2023, net cash used in operating activities was $286.3 million, compared with $1,241.1 million cash used in the year-ago period. Capital and software expenditures totaled $68.2 million, down from $139.8 million reported in the year-ago period. Free cash outflow (before dividends) in the year was $354.5 million, compared with $1,380.9 million free cash outflow a year ago.
During the same time period, Stanley Black did not spend any cash on business buyouts. SWK paid out dividends worth $119.8 million to its shareholders, up 3% from the year-ago period. Purchases of common stock for treasury were $4.8 million compared with $2,313 million in the year-ago period.
2023 Guidance
Stanley Black anticipates earnings in the range of breakeven to $2.00 per share in 2023. The bottom line is expected to be in the range of a loss of $1.65 per share to earnings of 60 cents per share compared with the prior guidance of a loss of $1.65 to earnings of 85 cents per share.
Free cash flow is expected to be $0.5 billion to $1.0 billion for 2023.
Zacks Rank & Stocks to Consider
SWK currently carries a Zacks Rank #4 (Sell). Some top-ranked companies from the Industrial Products sector are discussed below:
IR’s earnings surprise in the last four quarters was 8.5%, on average. In the past 60 days, estimates for Ingersoll Rand’s 2023 earnings have increased 3.3%. The stock has rallied 6.3% in the past six months.
Parker-Hannifin Corporation (PH - Free Report) presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 9.1%, on average.
In the past 60 days, estimates for Parker-Hannifin’s fiscal 2023 (ending June 2023) earnings have increased 0.5%. The stock has gained 7.5% in the past six months.
Allegion plc (ALLE - Free Report) presently carries a Zacks Rank of 2. ALLE’s earnings surprise in the last four quarters was 12.5%, on average.
In the past 60 days, Allegion’s earnings estimates have increased 4.1% for 2023. The stock has gained 1.7% in the past six months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Stanley Black (SWK) Q1 Earnings & Revenues Miss Estimates
Stanley Black & Decker, Inc. (SWK - Free Report) reported mixed first-quarter 2023 results. SWK’s earnings beat the Zacks Consensus Estimate by 43.8%. However, sales missed the same by 1.8%.
In the reported quarter, SWK incurred a loss of 41 cents per share, narrower than the Zacks Consensus Estimate of a loss of 73 cents per share. Our estimate for first-quarter adjusted earnings was a loss of 76 cents per share. The bottom line decreased 119.5% from the year-ago quarter’s $2.10.
Revenue Details
In the quarter under review, Stanley Black’s net sales were $3,931.8 million, reflecting a year-over-year decline of 11.6%. The results benefited 2% from favorable pricing. Foreign currency translation had an adverse impact of 2%, divestitures had a negative impact of 1% and lower volume affected sales 11%.
SWK’s top line missed the Zacks Consensus Estimate of $4,002 million. Our estimate for net sales in the reported quarter was $3,939.1 million.
Stanley Black reports net sales under two segments, namely Tools & Outdoor and Industrial. The segmental information is briefly discussed below:
Revenues from the Tools & Outdoor segment totaled $3,315.4 million, decreasing 12.8% year over year. Our estimate for segmental revenues was $3,342.0 million. Pricing added 2% to sales growth, while adverse foreign-currency translations lowered sales 2%. Lower volumes affected 13%.
Revenues from the Industrial segment grossed $616.4 million, decreasing 4.7% year over year. Our estimate for segmental revenues was $597.0 million. The segment gained 5% from effective pricing. Forex woes had a negative impact of 3% and lower volumes had a negative effect of 2%.
Stanley Black & Decker, Inc. Price, Consensus and EPS Surprise
Stanley Black & Decker, Inc. price-consensus-eps-surprise-chart | Stanley Black & Decker, Inc. Quote
Margin Profile
In the reported quarter, Stanley Black’s cost of sales decreased 1.5% year over year to $3,096.3 million. The metric represented 78.8% of the quarter’s net sales, compared with 70.6% in the year-ago quarter. The gross profit decreased 36% to $835.5 million. The gross margin decreased 810 basis points (bps) to 21.2%.
Selling, general and administrative expenses decreased 14.1% year over year to $825.1 million. The metric represented 21% of net sales in the reported quarter, compared with 21.6% in the year-ago period. Operating profit was $10.4 million in the quarter, compared with $345.1 million reported in the year-ago quarter. The margin declined 700 bps to 0.3%.
Balance Sheet and Cash Flow
While exiting the first quarter, Stanley Black had cash and cash equivalents of $387.6 million, down 2% from $395.6 million reported at the end of fourth-quarter 2022. The long-term debt balance increased 14% to $6,101.1 million from $5,352.9 million reported at the end of fourth-quarter 2022.
In the first three months of 2023, net cash used in operating activities was $286.3 million, compared with $1,241.1 million cash used in the year-ago period. Capital and software expenditures totaled $68.2 million, down from $139.8 million reported in the year-ago period. Free cash outflow (before dividends) in the year was $354.5 million, compared with $1,380.9 million free cash outflow a year ago.
During the same time period, Stanley Black did not spend any cash on business buyouts. SWK paid out dividends worth $119.8 million to its shareholders, up 3% from the year-ago period. Purchases of common stock for treasury were $4.8 million compared with $2,313 million in the year-ago period.
2023 Guidance
Stanley Black anticipates earnings in the range of breakeven to $2.00 per share in 2023. The bottom line is expected to be in the range of a loss of $1.65 per share to earnings of 60 cents per share compared with the prior guidance of a loss of $1.65 to earnings of 85 cents per share.
Free cash flow is expected to be $0.5 billion to $1.0 billion for 2023.
Zacks Rank & Stocks to Consider
SWK currently carries a Zacks Rank #4 (Sell). Some top-ranked companies from the Industrial Products sector are discussed below:
Ingersoll Rand Inc. (IR - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks.
IR’s earnings surprise in the last four quarters was 8.5%, on average. In the past 60 days, estimates for Ingersoll Rand’s 2023 earnings have increased 3.3%. The stock has rallied 6.3% in the past six months.
Parker-Hannifin Corporation (PH - Free Report) presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 9.1%, on average.
In the past 60 days, estimates for Parker-Hannifin’s fiscal 2023 (ending June 2023) earnings have increased 0.5%. The stock has gained 7.5% in the past six months.
Allegion plc (ALLE - Free Report) presently carries a Zacks Rank of 2. ALLE’s earnings surprise in the last four quarters was 12.5%, on average.
In the past 60 days, Allegion’s earnings estimates have increased 4.1% for 2023. The stock has gained 1.7% in the past six months.