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Is a Beat in the Offing for Stanley Black This Earnings Season?
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Stanley Black & Decker, Inc. (SWK - Free Report) is scheduled to release third-quarter 2024 results on Oct. 29, before market open.
The Zacks Consensus Estimate for earnings has increased 1% in the past 60 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average surprise being 20.3%.
The consensus estimate for this New Britain, CT-based tool maker’s revenues is pegged at $3.8 billion, indicating a decrease of 4.5% from the year-ago quarter. The consensus estimate for adjusted earnings is pinned at $1.03 per share. SWK reported adjusted earnings of $1.05 per share in the year-ago quarter. Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Let’s see how things have shaped up for Stanley Black prior to the announcement.
Factors to Note
Stanley Black’s Industrial segment’s results are expected to gain from the strong momentum in the Engineered Fastening business , driven by strength in the aerospace end market. However, weak demand in the general industrial market is expected to have hurt the performance of the segment.
Also, the divestiture of SWK’s infrastructure business is likely to have weighed on the segment’s year-over-year top-line comparison. We expect the Industrial segment’s revenues to decline 14.6% year over year to $511.4 million .
The company has been witnessing a slowdown in the industrial sector. Lower demand for power tools, owing to the softness in the DIY market, is likely to have reflected in the Tools & Outdoor segment’s top-line performance. However, solid demand for the DEWALT product line is likely to have augmented its sales. The consensus estimate for the segment’s revenues is pegged at $3.27 billion, indicating a 2.6% decrease from the year-ago quarter’s number.
Nevertheless, SWK’s cost-reduction program is likely to have aided its bottom line. The company is expected to have put up a healthy margin performance, supported by supply-chain transformation and inventory reduction efforts. We anticipate SWK’s adjusted gross margin to be 29.1% compared with 27.6% in the year-ago quarter.
Given the company’s extensive geographic presence, its operations are subject to foreign exchange headwinds. A stronger U.S. dollar is likely to have hurt Stanley Black's overseas business.
Stanley Black & Decker, Inc. Price and EPS Surprise
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 +3.54% as the Most Accurate Estimate is pegged at $1.07 per share, which is higher than the Zacks Consensus Estimate of $1.03. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Stanley Black presently carries a Zacks Rank of 3.
Other Stocks to Consider
Here are some other companies within the broader Industrial Products sector, which according to our model, have the right combination of elements to beat on earnings this reporting cycle.
The company is scheduled to release third-quarter results on Oct. 31. Ingersoll’s earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 11%.
Zebra Technologies (ZBRA - Free Report) has an Earnings ESP of +2.01% and a Zacks Rank of 3 at present. The company is slated to release third-quarter results on Oct. 29.
Zebra Technologies’ earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 11.9%.
Crane Company (CR - Free Report) has an Earnings ESP of +0.09% and a Zacks Rank of 2 at present. The company is slated to release third-quarter results on Oct. 28.
Crane Company’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 11.2%.
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Is a Beat in the Offing for Stanley Black This Earnings Season?
Stanley Black & Decker, Inc. (SWK - Free Report) is scheduled to release third-quarter 2024 results on Oct. 29, before market open.
The Zacks Consensus Estimate for earnings has increased 1% in the past 60 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average surprise being 20.3%.
The consensus estimate for this New Britain, CT-based tool maker’s revenues is pegged at $3.8 billion, indicating a decrease of 4.5% from the year-ago quarter. The consensus estimate for adjusted earnings is pinned at $1.03 per share. SWK reported adjusted earnings of $1.05 per share in the year-ago quarter. Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Let’s see how things have shaped up for Stanley Black prior to the announcement.
Factors to Note
Stanley Black’s Industrial segment’s results are expected to gain from the strong momentum in the Engineered Fastening business , driven by strength in the aerospace end market. However, weak demand in the general industrial market is expected to have hurt the performance of the segment.
Also, the divestiture of SWK’s infrastructure business is likely to have weighed on the segment’s year-over-year top-line comparison. We expect the Industrial segment’s revenues to decline 14.6% year over year to $511.4 million .
The company has been witnessing a slowdown in the industrial sector. Lower demand for power tools, owing to the softness in the DIY market, is likely to have reflected in the Tools & Outdoor segment’s top-line performance. However, solid demand for the DEWALT product line is likely to have augmented its sales. The consensus estimate for the segment’s revenues is pegged at $3.27 billion, indicating a 2.6% decrease from the year-ago quarter’s number.
Nevertheless, SWK’s cost-reduction program is likely to have aided its bottom line. The company is expected to have put up a healthy margin performance, supported by supply-chain transformation and inventory reduction efforts. We anticipate SWK’s adjusted gross margin to be 29.1% compared with 27.6% in the year-ago quarter.
Given the company’s extensive geographic presence, its operations are subject to foreign exchange headwinds. A stronger U.S. dollar is likely to have hurt Stanley Black's overseas business.
Stanley Black & Decker, Inc. Price and EPS Surprise
Stanley Black & Decker, Inc. price-eps-surprise | Stanley Black & Decker, Inc. Quote
Earnings Whispers
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 +3.54% as the Most Accurate Estimate is pegged at $1.07 per share, which is higher than the Zacks Consensus Estimate of $1.03. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Stanley Black presently carries a Zacks Rank of 3.
Other Stocks to Consider
Here are some other companies within the broader Industrial Products sector, which according to our model, have the right combination of elements to beat on earnings this reporting cycle.
Ingersoll Rand Inc. (IR - Free Report) has an Earnings ESP of +1.22% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is scheduled to release third-quarter results on Oct. 31. Ingersoll’s earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 11%.
Zebra Technologies (ZBRA - Free Report) has an Earnings ESP of +2.01% and a Zacks Rank of 3 at present. The company is slated to release third-quarter results on Oct. 29.
Zebra Technologies’ earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 11.9%.
Crane Company (CR - Free Report) has an Earnings ESP of +0.09% and a Zacks Rank of 2 at present. The company is slated to release third-quarter results on Oct. 28.
Crane Company’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 11.2%.