Stanley Black's (SWK) Q1 Earnings Beat, Revenues Down Y/Y
Stanley Black & Decker, Inc. SWK reported first-quarter 2024 adjusted earnings of 56 cents per share, which beat the Zacks Consensus Estimate of 55 cents. The company reported a loss of 41 cents per share in the year-ago quarter.
Stanley Black’s net sales of $3.9 billion beat the consensus estimate of $3.8 billion. The top line declined 1.6% year over year due to weakness in the Tools & Outdoor segment.
Segmental Discussion
Revenues from SWK’s primary segment, Tools & Outdoor, totaled $3.3 billion, down approximately 1% year over year. Muted market demand weighed on segmental revenues. Our estimate for segmental revenues was $3.3 billion.
Revenues from the Industrial segment grossed $584.9 million, down 5.1% year over year. Lower volumes in the infrastructure market hurt segmental revenues. Our estimate for segmental revenues was $549.2 million.
Stanley Black & Decker, Inc. Price and EPS Surprise
Stanley Black & Decker, Inc. price-eps-surprise | Stanley Black & Decker, Inc. Quote
Margin Profile
Stanley Black’s cost of sales decreased 10.8% year over year to $2.8 billion. The gross profit increased 32.7% year over year to $1.1 billion. The gross margin increased 740 basis points (bps) year over year to 28.6%.
Selling, general and administrative expenses increased 3.2% year over year to $851.8 million. Adjusted EBITDA was $342.6 million, reflecting year-over-year growth of 93%. The margin increased 440 bps to 8.9%.
Balance Sheet and Cash Flow
While exiting the first quarter, Stanley Black had cash and cash equivalents of $476.6 million compared with $449.4 million reported at the end of fourth-quarter 2023. The long-term debt balance was $5.6 billion, higher than $6.1 billion reported at the end of fourth-quarter 2023.
In the first three months of 2024, net cash used in operating activities was $431 million compared with $286.3 million cash used in the year-ago period. Capital and software expenditures totaled $65.7 million, down from $68.2 million reported in the year-ago period. Free cash outflow (before dividends) in the year was $496.7 million compared with $354.5 billion free cash outflow a year ago.
In the first three months of 2024, SWK, carrying a current Zacks Rank #3 (Hold), paid out dividends worth $121.8 million to its shareholders, up 1.7% from the year-ago period. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2024 Guidance
For 2024, Stanley Black expects adjusted earnings of $3.50-$4.50 per share. The company anticipates earnings of $1.60-$2.85 per share in the year
Stanley Black expects a free cash flow of $0.6-$0.8 billion for 2024.
Performance of Other Industrial Companies
IDEX Corporation’s IEX second-quarter fiscal 2024 adjusted earnings of $1.88 per share surpassed the Zacks Consensus Estimate of $1.75. On a year-over-year basis, the bottom line decreased approximately 10.1%.
IDEX’s net sales of $800.5 million underperformed the consensus estimate of $805 million. The top line also decreased 5.3% year over year.
A. O. Smith Corporation’s AOS second-quarter fiscal 2024 adjusted earnings of $1.00 per share surpassed the Zacks Consensus Estimate of 99 cents. The bottom line increased 6% on a year-over-year basis.
Net sales of $978.8 million missed the consensus estimate of $995 million. However, the top line inched up 1% year over year, driven by strong demand for commercial water heaters in North America.
W.W. Grainger, Inc. GWW has reported earnings per share of $9.62 in second-quarter fiscal 2024, beating the Zacks Consensus Estimate of $9.58. The bottom line improved 0.1% year over year.
Grainger’s quarterly revenues rose 3.5% year over year to $4.24 billion. The top line missed the consensus estimate of $4.27 billion.
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Stanley Black & Decker, Inc. (SWK) : Free Stock Analysis Report
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