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Stanley Black's Q3 Earnings Beat Estimates, Revenues Down Y/Y
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Stanley Black & Decker, Inc. (SWK - Free Report) reported third-quarter 2024 adjusted earnings of $1.22 per share, which beat the Zacks Consensus Estimate of $1.03. The bottom line increased 16.2% year over year.
Stanley Black’s net sales of $3.75 billion missed the consensus estimate of $3.78 billion. The top line declined 5.1% year over year due to weakness in both segments.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Segmental Discussion
Revenues from SWK’s primary segment, Tools & Outdoor, totaled $3.26 billion, which declined 2.7% year over year. Our estimate for segmental revenues was $3.3 billion.
Revenues from the Industrial segment grossed $488.0 million, down 18.5% year over year. Our estimate for segmental revenues was $511.4 million.
Stanley Black & Decker, Inc. Price, Consensus and EPS Surprise
Stanley Black’s cost of sales decreased 9.1% year over year to $2.6 billion. The gross profit increased 5.7% year over year to $1.1 billion. The gross margin increased 310 basis points (bps) year over year to 29.9%.
Selling, general and administrative expenses increased 0.4% year over year to $797.1 million. Adjusted EBITDA was $406.4 million, indicating year-over-year growth of 9.3%. The margin increased 140 bps to 10.8%.
SWK’s Balance Sheet and Cash Flow
While exiting the third quarter, Stanley Black had cash and cash equivalents of $298.7 million compared with $449.4 million at the end of fourth-quarter 2023. The long-term debt balance was $5.6 billion, lower than $6.1 billion reported at the end of fourth-quarter 2023.
In the first nine months of 2024, net cash generated in operating activities was $285.8 million, down 35.6% year over year. Capital and software expenditures totaled $239.4 million, up from $216.4 million reported in the year-ago period. Free cash flow (before dividends) was $188.4 million compared with $205.6 million a year ago.
In the first nine months of the year, SWK paid out dividends worth $367.2 million to its shareholders, up 1.8% from the year-ago period.
SWK’s 2024 Guidance
Stanley Black expects adjusted earnings to be in the range of $3.90-$4.30 per share compared with $3.70-$4.50 per share anticipated earlier. The Zacks Consensus Estimate for earnings is pegged at $4.18 per share. The company anticipates earnings to be in the range of $1.15-$1.75 per share.
Stanley Black expects a free cash flow in the range of $0.65-$0.85 billion.
Avery Dennison Corporation (AVY - Free Report) has delivered third-quarter adjusted earnings of $2.33 per share, which beat the Zacks Consensus Estimate of $2.32. The bottom line increased 9% year over year, driven by higher volume and productivity gains.
Total revenues grew 4.1% year over year to $2.18 billion and missed the consensus estimate of $2.2 billion.
John Bean Technologies Corporation reported adjusted earnings of $1.50 per share in third-quarter 2024, 35.1% higher than the prior-year quarter. The figure beat the Zacks Consensus Estimate of $1.41.
Revenues of $454 million increased 12.4% from the year-ago quarter. The top line surpassed the consensus estimate of $445 million.
A. O. Smith Corporation’s (AOS - Free Report) third-quarter adjusted earnings of 82 cents per share matched the Zacks Consensus Estimate. The bottom line decreased 8.9% on a year-over-year basis.
Net sales of $902.6 million missed the consensus estimate of $913 million. The top line decreased 4% year over year due to lower sales in China and decreased volumes of water heaters in North America.
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Stanley Black's Q3 Earnings Beat Estimates, Revenues Down Y/Y
Stanley Black & Decker, Inc. (SWK - Free Report) reported third-quarter 2024 adjusted earnings of $1.22 per share, which beat the Zacks Consensus Estimate of $1.03. The bottom line increased 16.2% year over year.
Stanley Black’s net sales of $3.75 billion missed the consensus estimate of $3.78 billion. The top line declined 5.1% year over year due to weakness in both segments.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Segmental Discussion
Revenues from SWK’s primary segment, Tools & Outdoor, totaled $3.26 billion, which declined 2.7% year over year. Our estimate for segmental revenues was $3.3 billion.
Revenues from the Industrial segment grossed $488.0 million, down 18.5% year over year. Our estimate for segmental revenues was $511.4 million.
Stanley Black & Decker, Inc. Price, Consensus and EPS Surprise
Stanley Black & Decker, Inc. price-consensus-eps-surprise-chart | Stanley Black & Decker, Inc. Quote
SWK’s Margin Profile
Stanley Black’s cost of sales decreased 9.1% year over year to $2.6 billion. The gross profit increased 5.7% year over year to $1.1 billion. The gross margin increased 310 basis points (bps) year over year to 29.9%.
Selling, general and administrative expenses increased 0.4% year over year to $797.1 million. Adjusted EBITDA was $406.4 million, indicating year-over-year growth of 9.3%. The margin increased 140 bps to 10.8%.
SWK’s Balance Sheet and Cash Flow
While exiting the third quarter, Stanley Black had cash and cash equivalents of $298.7 million compared with $449.4 million at the end of fourth-quarter 2023. The long-term debt balance was $5.6 billion, lower than $6.1 billion reported at the end of fourth-quarter 2023.
In the first nine months of 2024, net cash generated in operating activities was $285.8 million, down 35.6% year over year. Capital and software expenditures totaled $239.4 million, up from $216.4 million reported in the year-ago period. Free cash flow (before dividends) was $188.4 million compared with $205.6 million a year ago.
In the first nine months of the year, SWK paid out dividends worth $367.2 million to its shareholders, up 1.8% from the year-ago period.
SWK’s 2024 Guidance
Stanley Black expects adjusted earnings to be in the range of $3.90-$4.30 per share compared with $3.70-$4.50 per share anticipated earlier. The Zacks Consensus Estimate for earnings is pegged at $4.18 per share. The company anticipates earnings to be in the range of $1.15-$1.75 per share.
Stanley Black expects a free cash flow in the range of $0.65-$0.85 billion.
SWK’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Industrial Companies
Avery Dennison Corporation (AVY - Free Report) has delivered third-quarter adjusted earnings of $2.33 per share, which beat the Zacks Consensus Estimate of $2.32. The bottom line increased 9% year over year, driven by higher volume and productivity gains.
Total revenues grew 4.1% year over year to $2.18 billion and missed the consensus estimate of $2.2 billion.
John Bean Technologies Corporation reported adjusted earnings of $1.50 per share in third-quarter 2024, 35.1% higher than the prior-year quarter. The figure beat the Zacks Consensus Estimate of $1.41.
Revenues of $454 million increased 12.4% from the year-ago quarter. The top line surpassed the consensus estimate of $445 million.
A. O. Smith Corporation’s (AOS - Free Report) third-quarter adjusted earnings of 82 cents per share matched the Zacks Consensus Estimate. The bottom line decreased 8.9% on a year-over-year basis.
Net sales of $902.6 million missed the consensus estimate of $913 million. The top line decreased 4% year over year due to lower sales in China and decreased volumes of water heaters in North America.