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What to Expect for Stanley Black & Decker's (SWK) Q1 Earnings?

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Stanley Black & Decker, Inc. (SWK - Free Report) is slated to report first-quarter 2020 results on Apr 30, before market open.

The company beat earnings estimates in the trailing four quarters, with a positive earnings surprise of 9.95%, on average. Notably, its fourth-quarter 2019 earnings of $2.18 per share surpassed the Zacks Consensus Estimate of $2.16.

In the past three months, shares of the company decreased 30.8% compared with the industry’s fall of 36.5%.




Let us delve deeper.

Key Factors & Estimates for Q1

The coronavirus outbreak is predicted to have hurt Stanley Black & Decker’s operations — especially its manufacturing capabilities and supply chain — in the first quarter of 2020. However, its actions to reduce spending and readjust manufacturing might have helped.

In addition, external headwinds — in forms of forex woes, tariffs and commodity inflation —adversely impacted the company’s results in the past few quarters. The same trend is expected to get reflected in first-quarter results as well.

The Zack Consensus Estimate for the company’s first-quarter earnings per share is pegged at $1.13, indicating a 20.4% decline from the year-ago reported figure and a 48.2% fall sequentially. Also, the consensus estimate for revenues of $3,280 million suggests a 1.6% decrease from the year-ago quarter’s reported number and an 11.7% dip from the last reported quarter.

However, growing business internationally, benefits from the popularity of e-commerce, innovation investments, favorable pricing actions and buyouts (already completed) are expected to have benefited the company’s performance in the quarter.

For the Security segment, transformative actions taken in the past few quarters are anticipated to have aided the performance in the first quarter, while macro uncertainties adversely impacted. The Zack Consensus Estimate for the segment’s first-quarter sales is pegged at $487 million, indicating a 0.2% increase from the year-ago reported figure and a 3.9% fall sequentially.

Also, weakness in the industrial, automotive, and oil & gas pipeline end markets across the globe might get reflected in Industrial’s first-quarter results. Further, Tools & Storage segment might have suffered from difficulties associated with the roll-out of Craftsman products.

The Zacks Consensus Estimate for the Industrial segment’s first-quarter sales is pegged at $584 million, suggesting a 5.2% increase from the year-ago reported figure and a decline of 2.2% sequentially. Also, the consensus estimate for the Tools & Storage segment’s sales of $2,253 million suggests a decline of 1.7% from the year-ago number and a 13.7% fall from the previous quarter.

Earnings Whispers

Our proven model doesn’t predict an earnings beat for Stanley Black & Decker 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Stanley Black & Decker has an Earnings ESP of -11.01%, with the Most Accurate Estimate of $1.01 below the Zacks Consensus Estimate of $1.13.

Stanley Black & Decker, Inc. Price, Consensus and EPS Surprise

 

Stanley Black & Decker, Inc. Price, Consensus and EPS Surprise

Stanley Black & Decker, Inc. price-consensus-eps-surprise-chart | Stanley Black & Decker, Inc. Quote

Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).

Stocks to Consider

Here are some companies in the Zacks Industrial Products sector that you may want to consider as according to our model these have the right combination of elements to post an earnings beat this quarter.

Silgan Holdings Inc. (SLGN - Free Report) presently has an Earnings ESP of +1.32% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ball Corporation currently has an Earnings ESP of +1.56% and a Zacks Rank #3.

Nordson Corporation (NDSN - Free Report) presently has an Earnings ESP of +1.17% and a Zacks Rank #3.

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