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The Zacks Consensus Estimate for the company’s third-quarter earnings has been revised upward by 5% in the past 60 days. The company has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 47.2%.
Let’s see how things have shaped up for Stanley Black this earnings season.
Stanley Black & Decker, Inc. Price and EPS Surprise
Stanley Black’s third-quarter results are likely to be hurt by lower volumes due to a soft demand environment.
Reduced retail and consumer demand has been a drag on the Tools & Outdoor segment’s performance. We expect Tools & Outdoor segment revenues to decline 3.1% year over year for the third quarter. Our estimate for the segment’s operating profit indicates a 30.1% drop from the year-ago reported figure.
Last year’s divestiture of the oil and gas business has been weighing on the Industrial segment. We expect the segment’s revenues to dip 2.4% on a year-over-year basis in the third quarter due to some temporary channel inventory reductions. On the flip side, we expect the segment’s operating profit to jump 44.5% year over year in the third quarter.
Amid the low-demand scenario, Stanley Black has been making efforts to eliminate and reduce overlapping capabilities and functions. The company has been generating significant pre-tax run-rate savings from its global cost-reduction program and the third quarter is no different. We expect the company’s adjusted earnings to increase 5.1% year over year in the soon-to-be-reported quarter.
Additionally, SWK is expected to put up a healthy margin performance in the upcoming quarterly results due to supply-chain transformation and inventory reduction efforts.
What Does the Zacks Model Say
Our proven model predicts 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, which is the case here, as elaborated below.
Earnings ESP: Stanley Black has an Earnings ESP of +1.84% as the Most Accurate Estimate is pegged at 85 cents, higher than the Zacks Consensus Estimate of 84 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Stanley Black currently carries a Zacks Rank #2.
Highlights of Q2 Earnings
Stanley Black incurred an adjusted loss of 11 cents per share, narrower than the Zacks Consensus Estimate of a loss of 38 cents per share. The bottom line decreased 106.2% year over year from the year-ago quarter’s figure of $1.77 per share due to lower sales. Net sales of $4,158.9 million outperformed the Zacks Consensus Estimate of $4,122 million. However, the top line declined 5.3%.
Other Stocks to Consider
Here are some other companies, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.
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What's in the Offing for Stanley Black (SWK) in Q3 Earnings?
Stanley Black & Decker, Inc. (SWK - Free Report) is scheduled to release third-quarter 2023 results on Oct 27, before market open.
The Zacks Consensus Estimate for the company’s third-quarter earnings has been revised upward by 5% in the past 60 days. The company has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 47.2%.
Let’s see how things have shaped up for Stanley Black this earnings season.
Stanley Black & Decker, Inc. Price and EPS Surprise
Stanley Black & Decker, Inc. price-eps-surprise | Stanley Black & Decker, Inc. Quote
Factors to Note
Stanley Black’s third-quarter results are likely to be hurt by lower volumes due to a soft demand environment.
Reduced retail and consumer demand has been a drag on the Tools & Outdoor segment’s performance. We expect Tools & Outdoor segment revenues to decline 3.1% year over year for the third quarter. Our estimate for the segment’s operating profit indicates a 30.1% drop from the year-ago reported figure.
Last year’s divestiture of the oil and gas business has been weighing on the Industrial segment. We expect the segment’s revenues to dip 2.4% on a year-over-year basis in the third quarter due to some temporary channel inventory reductions. On the flip side, we expect the segment’s operating profit to jump 44.5% year over year in the third quarter.
Amid the low-demand scenario, Stanley Black has been making efforts to eliminate and reduce overlapping capabilities and functions. The company has been generating significant pre-tax run-rate savings from its global cost-reduction program and the third quarter is no different. We expect the company’s adjusted earnings to increase 5.1% year over year in the soon-to-be-reported quarter.
Additionally, SWK is expected to put up a healthy margin performance in the upcoming quarterly results due to supply-chain transformation and inventory reduction efforts.
What Does the Zacks Model Say
Our proven model predicts 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, which is the case here, as elaborated below.
Earnings ESP: Stanley Black has an Earnings ESP of +1.84% as the Most Accurate Estimate is pegged at 85 cents, higher than the Zacks Consensus Estimate of 84 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Stanley Black currently carries a Zacks Rank #2.
Highlights of Q2 Earnings
Stanley Black incurred an adjusted loss of 11 cents per share, narrower than the Zacks Consensus Estimate of a loss of 38 cents per share. The bottom line decreased 106.2% year over year from the year-ago quarter’s figure of $1.77 per share due to lower sales. Net sales of $4,158.9 million outperformed the Zacks Consensus Estimate of $4,122 million. However, the top line declined 5.3%.
Other Stocks to Consider
Here are some other companies, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.
Honeywell International (HON - Free Report) has an Earnings ESP of +0.46% and a Zacks Rank #3. The company is set to release third-quarter results on Oct 26. You can see the complete list of today’s Zacks #1 Rank stocks here.
Honeywell pulled off a trailing four-quarter earnings surprise of 3.5%, on average. The stock has gained 2.3% in a year.
Tenaris (TS - Free Report) has an Earnings ESP of +2.56% and a Zacks Rank #3. The company is slated to release third-quarter results on Nov 1.
Tenaris delivered a trailing four-quarter earnings surprise of 7.7%, on average. The stock has rallied 14.2% in a year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.