From CNBC: 2024-07-30 13:11:07

Stanley Black & Decker’s strong quarterly results included a 1% increase in sales organically, beating analyst expectations. Adjusted earnings per share were $1.09, well above the 84-cent estimate. The company has been implementing cost-cutting measures to strengthen its position in the market, leading to a strong cash flow and an increase in the full-year guidance to $3.70 to $4.50 adjusted EPS. The stock jumped 7.5% following the earnings release.

The company’s restructuring plan, including cost-saving initiatives and supply chain transformation, is driving growth. Although the repair and remodeling demand is soft due to higher interest rates, the company remains focused on increasing profitability and enhancing shareholder value. Management’s goal of achieving a 35% gross margin by 2025 is on track, with $1.3 billion in savings realized so far.

Stanley Black & Decker reported that its Tools & Outdoor segment generated sales of $3.53 billion, beating analyst expectations. Power Tools were down 2%, hand tools were unchanged, and outdoor revenue was up 6%. Geographically, North American sales were up 1%, Europe was down 3%, and the rest of the world was up 5%. Full-year organic sales in Tools & Outdoor are projected to be down about 1% at the midpoint.

In Stanley Black & Decker’s smaller Industrial segment, sales fell nearly 20% to $496 million due to the infrastructure divestment. Segment operating income exceeded expectations, with the Engineered Fastening business up 2% organically. Aerospace sales were up 24%, driven by new business wins. Full-year Industrial segment sales and margins are expected to be relatively flat to slightly positive.

Management raised their full-year guidance, targeting an adjusted EPS range of $3.70 to $4.50, up from $3.50 to $4.50 previously. Full-year free cash flow is now expected to be between $650 million and $850 million, supporting a 1-cent per share quarterly dividend increase to 82 cents. The company remains focused on delivering profitable growth and enhancing shareholder value.



Read more at CNBC:: We’re raising Stanley Black & Decker (SWK) price target on earnings rally