Earnings Alerts

Stanley Black & Decker (SWK) Earnings: 2Q Sales Align with Estimates, Strong Cash Flow Highlights Performance


  • Stanley Black & Decker‘s net sales for Q2 were $4.02 billion, meeting the estimate of $4.01 billion.
  • Industrial sales were $495.7 million, slightly below the estimate of $496.9 million.
  • Tools & Outdoor sales reached $3.53 billion, surpassing the estimate of $3.51 billion.
  • The company reported a loss per share of 13 cents.
  • Tools & Outdoor adjusted profit rate was 9%, below the expected 9.8%.
  • Industrial adjusted profit rate was 13.5%, higher than the estimate of 12.5%.
  • Inventories were $4.56 billion, lower than the estimated $4.67 billion.
  • Free cash flow for the quarter was $485.8 million, significantly exceeding the estimate of negative $16.4 million.
  • Management updated its 2024 GAAP EPS guidance range to $0.90 to $2.00 from the previous $1.60 to $2.85, due to environmental reserve adjustments.
  • The company anticipates second half free cash flow will cover the cash dividend and support $400 – $500 million in short-term debt reduction by year-end.
  • Donald Allan, Jr., President & CEO, noted strong execution on operational priorities, improved gross margin, and strong cash generation in Q2.
  • Analyst ratings: 3 buys, 12 holds, 2 sells.



Stanley Black & Decker on Smartkarma



Analyst coverage of Stanley Black & Decker on Smartkarma, hosted by independent investment research network, includes reports from Baptista Research. One report titled “Stanley Black & Decker Inc.: How Are They Executing Product Innovation and Supply Chain Optimization? – Major Drivers” highlights the company’s strategic progress in the face of ongoing market challenges. Emphasizing gross margin expansion and cash flow enhancement, Stanley Black & Decker aims to navigate a challenging macroeconomic environment. The company’s global cost reduction program is also making significant headway, with $1.2 billion of the targeted $2 billion in cost savings already achieved.

Another report by Baptista Research, “Stanley Black & Decker Inc.: Emphasis on Core Market Leadership Positions in Tools & Outdoor! – Major Drivers,” showcases the company’s optimism and value creation in Q1 2024. Despite a tough macro environment, Stanley Black & Decker excelled in free cash flow generation and gross margin expansion. The company’s consistent focus on business transformation and financial performance, including above $850 million in free cash flow and ongoing improvement in adjusted gross margin, has drawn positive attention from analysts at Baptista Research as they conduct a thorough evaluation of the company’s future prospects.



A look at Stanley Black & Decker Smart Scores

FactorScoreMagnitude
Value4
Dividend4
Growth3
Resilience2
Momentum3
OVERALL SMART SCORE3.2

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Stanley Black & Decker Inc. is positioned favorably for the long term, according to Smartkarma’s Smart Scores. With strong ratings in Value and Dividend, the company is highlighted for its solid fundamentals and attractive dividend yield. Although Growth and Momentum scores slightly trail behind, Stanley Black & Decker‘s diverse offerings in hand tools, power tools, security solutions, and healthcare solutions provide a stable foundation for future expansion and innovation.

Despite a lower Resilience score, the company’s overall outlook remains positive, reflecting its position as a leading global provider of essential products and solutions. Investors may find Stanley Black & Decker an attractive choice for potential long-term growth and income generation, especially considering its strong performance in key areas like Value and Dividend.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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