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Why Is Stanley Black & Decker (SWK) Up 4.2% Since Last Earnings Report?
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A month has gone by since the last earnings report for Stanley Black & Decker (SWK - Free Report) . Shares have added about 4.2% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Stanley Black & Decker due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Stanley Black & Decker, Inc. before we dive into how investors and analysts have reacted as of late.
Stanley Black's Q3 Earnings Beat Estimates, Revenues Miss
Stanley Black reported third-quarter 2025 adjusted earnings of $1.43 per share, which beat the Zacks Consensus Estimate of $1.19. The bottom line increased 17.2% year over year.
Stanley Black’s net sales of $3.76 billion missed the consensus estimate of $3.77 billion. The top line was in line with the year-ago quarter.
Stanley Black’s Segmental Discussion
Effective from the first quarter of 2025, Stanley Black has renamed the Industrial segment as the Engineered Fastening segment. It had no impact on the company's consolidated financial statements or segment results.
Revenues from the company’s primary segment, Tools & Outdoor, totaled $3.26 billion, which were in line with the year-ago quarter. Our estimate was $3.31 billion.
Revenues from the Engineered Fastening segment grossed $501 million, up 3% year over year. Our estimate was $451.2 million.
Margin Profile
Stanley Black’s cost of sales was down 2% year over year to $2.58 billion. The gross profit increased 5.2% year over year to $1.18 billion. The gross margin increased 150 basis points (bps) year over year to 31.4%.
Selling, general and administrative expenses decreased 0.8% year over year to $791 million. Adjusted EBITDA was $461.0 million, indicating a year-over-year increase of 13.4%. The margin increased 150 bps to 12.3%.
Balance Sheet and Cash Flow
While exiting the third quarter, Stanley Black had cash and cash equivalents of $268.3 million compared with $290.5 million at the end of fourth-quarter 2024. The long-term debt balance was $4.70 billion, lower than $5.6 billion reported at the end of fourth-quarter 2024.
In the first nine months of 2025, net cash generated by operating activities was $15.5 million compared with $427.8 million generated in the year-ago period. Capital and software expenditures totaled $210.5 million, down from $239.4 million reported in the year-ago period. Free cash flow (before dividends) was a negative $195.0 million compared with $188.4 million a year ago.
In the first nine months, it paid out dividends worth $374.3 million to its shareholders, up 1.9% from the year-ago period.
2025 Guidance
Stanley Black expects total revenues to be in the range of (1%)-flat on a year-over-year basis. The company anticipates earnings to be $2.55-$2.70 per share compared with $3.45 (+/- $0.10) expected earlier. Adjusted earnings are projected to be approximately $4.55 per share. The company targets to generate annual free cash flow (non-GAAP) of approximately $600 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -16.54% due to these changes.
VGM Scores
At this time, Stanley Black & Decker has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Stanley Black & Decker has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Stanley Black & Decker belongs to the Zacks Manufacturing - Tools & Related Products industry. Another stock from the same industry, Lincoln Electric Holdings (LECO - Free Report) , has gained 5.5% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.
Lincoln Electric reported revenues of $1.06 billion in the last reported quarter, representing a year-over-year change of +7.9%. EPS of $2.47 for the same period compares with $2.14 a year ago.
For the current quarter, Lincoln Electric is expected to post earnings of $2.52 per share, indicating a change of -2% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.9% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Lincoln Electric. Also, the stock has a VGM Score of B.
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Why Is Stanley Black & Decker (SWK) Up 4.2% Since Last Earnings Report?
A month has gone by since the last earnings report for Stanley Black & Decker (SWK - Free Report) . Shares have added about 4.2% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Stanley Black & Decker due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Stanley Black & Decker, Inc. before we dive into how investors and analysts have reacted as of late.
Stanley Black's Q3 Earnings Beat Estimates, Revenues Miss
Stanley Black reported third-quarter 2025 adjusted earnings of $1.43 per share, which beat the Zacks Consensus Estimate of $1.19. The bottom line increased 17.2% year over year.
Stanley Black’s net sales of $3.76 billion missed the consensus estimate of $3.77 billion. The top line was in line with the year-ago quarter.
Stanley Black’s Segmental Discussion
Effective from the first quarter of 2025, Stanley Black has renamed the Industrial segment as the Engineered Fastening segment. It had no impact on the company's consolidated financial statements or segment results.
Revenues from the company’s primary segment, Tools & Outdoor, totaled $3.26 billion, which were in line with the year-ago quarter. Our estimate was $3.31 billion.
Revenues from the Engineered Fastening segment grossed $501 million, up 3% year over year. Our estimate was $451.2 million.
Margin Profile
Stanley Black’s cost of sales was down 2% year over year to $2.58 billion. The gross profit increased 5.2% year over year to $1.18 billion. The gross margin increased 150 basis points (bps) year over year to 31.4%.
Selling, general and administrative expenses decreased 0.8% year over year to $791 million. Adjusted EBITDA was $461.0 million, indicating a year-over-year increase of 13.4%. The margin increased 150 bps to 12.3%.
Balance Sheet and Cash Flow
While exiting the third quarter, Stanley Black had cash and cash equivalents of $268.3 million compared with $290.5 million at the end of fourth-quarter 2024. The long-term debt balance was $4.70 billion, lower than $5.6 billion reported at the end of fourth-quarter 2024.
In the first nine months of 2025, net cash generated by operating activities was $15.5 million compared with $427.8 million generated in the year-ago period. Capital and software expenditures totaled $210.5 million, down from $239.4 million reported in the year-ago period. Free cash flow (before dividends) was a negative $195.0 million compared with $188.4 million a year ago.
In the first nine months, it paid out dividends worth $374.3 million to its shareholders, up 1.9% from the year-ago period.
2025 Guidance
Stanley Black expects total revenues to be in the range of (1%)-flat on a year-over-year basis. The company anticipates earnings to be $2.55-$2.70 per share compared with $3.45 (+/- $0.10) expected earlier. Adjusted earnings are projected to be approximately $4.55 per share. The company targets to generate annual free cash flow (non-GAAP) of approximately $600 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -16.54% due to these changes.
VGM Scores
At this time, Stanley Black & Decker has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Stanley Black & Decker has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Stanley Black & Decker belongs to the Zacks Manufacturing - Tools & Related Products industry. Another stock from the same industry, Lincoln Electric Holdings (LECO - Free Report) , has gained 5.5% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.
Lincoln Electric reported revenues of $1.06 billion in the last reported quarter, representing a year-over-year change of +7.9%. EPS of $2.47 for the same period compares with $2.14 a year ago.
For the current quarter, Lincoln Electric is expected to post earnings of $2.52 per share, indicating a change of -2% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.9% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Lincoln Electric. Also, the stock has a VGM Score of B.