We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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 & Decker (SWK) Q1 Earnings: What's in Store?
Read MoreHide Full Article
Industrial tool maker Stanley Black & Decker, Inc. (SWK - Free Report) is slated to report first-quarter 2017 results on Apr 21, before the market opens.
Over the last three months, the company’s shares yielded 9.66% return, outperforming the gain of 7.39% recorded by the Zacks categorized Machinery-Tools & Related Products industry.
Also, the company performed well in the last four quarters, beating estimates on all occasions with an average positive earnings surprise of 6.01%. Let us see how things are shaping up for Stanley Black & Decker this quarter.
Factors to Affect Q1 Results
We believe that U.S. government’s policies encouraging better trade relations, increase in infrastructural investments, job creation and high consumer-end demand will support growth of the machinery companies like Stanley Black & Decker.
Other economic indicators are pointing toward a healthy business environment in the machinery industry. Industrial production grew 0.1% year over year in January, 0.4% in February and 1.5% in March. Notably, industrial production in the first quarter grew 1.5% year over year driven by improvements in manufacturing, mining and utilities outputs. Also, new export orders for U.S.-manufactured machinery increased 2.9% in the first two months of 2017.
Also, Stanley Black & Decker has solid growth opportunities, backed by its organic and inorganic strategies. In the first quarter, the company acquired Newell Tools and Craftsman Brand businesses while in February it completed selling a portion of the Mechanical Security businesses. We believe that the above-mentioned inorganic activities will influence the quarterly results.
On a cautious note, we believe that Stanley Black & Decker’s exposure to domestic and international headwinds, including uncertain global economic conditions, unfavorable foreign currency movements, commodity inflation, industry rivalry and high debt levels might have impacted its results in the first quarter.
Earnings Whispers
Our proven model does not conclusively show that Stanley Black & Decker will be able to pull a surprise this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
That is not the case here for as you will see below.
Zacks ESP: Earnings ESP for the stock is currently -1.68%. This is because the Most Accurate estimate of $1.17 is below the Zacks Consensus Estimate of $1.19.
Stanley Black & Decker, Inc. Price and EPS Surprise
Zacks Rank: Stanley Black & Decker currently carries a Zacks Rank #2. Despite a favorable ranking, a negative Earnings ESP makes earnings surprise prediction difficult.
Note, we caution against stocks with a Zacks Rank #4 or #5 (Sell-rated) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.
Stocks to Consider
Here are some companies in the machinery industry you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Actuant Corporation , with an Earnings ESP of +2.5% and a Zacks Rank #3.
Illinois Tool Works Inc. (ITW - Free Report) , with an Earnings ESP of +0.69% and a Zacks Rank #3.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Stanley Black & Decker (SWK) Q1 Earnings: What's in Store?
Industrial tool maker Stanley Black & Decker, Inc. (SWK - Free Report) is slated to report first-quarter 2017 results on Apr 21, before the market opens.
Over the last three months, the company’s shares yielded 9.66% return, outperforming the gain of 7.39% recorded by the Zacks categorized Machinery-Tools & Related Products industry.
Also, the company performed well in the last four quarters, beating estimates on all occasions with an average positive earnings surprise of 6.01%. Let us see how things are shaping up for Stanley Black & Decker this quarter.
Factors to Affect Q1 Results
We believe that U.S. government’s policies encouraging better trade relations, increase in infrastructural investments, job creation and high consumer-end demand will support growth of the machinery companies like Stanley Black & Decker.
Other economic indicators are pointing toward a healthy business environment in the machinery industry. Industrial production grew 0.1% year over year in January, 0.4% in February and 1.5% in March. Notably, industrial production in the first quarter grew 1.5% year over year driven by improvements in manufacturing, mining and utilities outputs. Also, new export orders for U.S.-manufactured machinery increased 2.9% in the first two months of 2017.
Also, Stanley Black & Decker has solid growth opportunities, backed by its organic and inorganic strategies. In the first quarter, the company acquired Newell Tools and Craftsman Brand businesses while in February it completed selling a portion of the Mechanical Security businesses. We believe that the above-mentioned inorganic activities will influence the quarterly results.
On a cautious note, we believe that Stanley Black & Decker’s exposure to domestic and international headwinds, including uncertain global economic conditions, unfavorable foreign currency movements, commodity inflation, industry rivalry and high debt levels might have impacted its results in the first quarter.
Earnings Whispers
Our proven model does not conclusively show that Stanley Black & Decker will be able to pull a surprise this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
That is not the case here for as you will see below.
Zacks ESP: Earnings ESP for the stock is currently -1.68%. This is because the Most Accurate estimate of $1.17 is below the Zacks Consensus Estimate of $1.19.
Stanley Black & Decker, Inc. Price and EPS Surprise
Stanley Black & Decker, Inc. Price and EPS Surprise | Stanley Black & Decker, Inc. Quote
Zacks Rank: Stanley Black & Decker currently carries a Zacks Rank #2. Despite a favorable ranking, a negative Earnings ESP makes earnings surprise prediction difficult.
Note, we caution against stocks with a Zacks Rank #4 or #5 (Sell-rated) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.
Stocks to Consider
Here are some companies in the machinery industry you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Parker-Hannifin Corporation (PH - Free Report) , with an Earnings ESP of +2.70% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Actuant Corporation , with an Earnings ESP of +2.5% and a Zacks Rank #3.
Illinois Tool Works Inc. (ITW - Free Report) , with an Earnings ESP of +0.69% and a Zacks Rank #3.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>