Stanley Black & Decker
The 10-second takeaway
For the quarter ended Dec. 29 (Q4), Stanley Black & Decker beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share grew significantly.
Gross margins dropped, operating margins shrank, net margins grew.
Stanley Black & Decker booked revenue of $2.67 billion. The 10 analysts polled by S&P Capital IQ predicted revenue of $2.59 billion on the same basis. GAAP reported sales were 4.4% lower than the prior-year quarter's $2.79 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.37. The 12 earnings estimates compiled by S&P Capital IQ anticipated $1.28 per share. GAAP EPS of $2.99 for Q4 were 202% higher than the prior-year quarter's $0.99 per share. (The prior-year quarter included -$0.06 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 35.5%, 10 basis points worse than the prior-year quarter. Operating margin was 8.3%, 210 basis points worse than the prior-year quarter. Net margin was 18.4%, 1,250 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.59 billion. On the bottom line, the average EPS estimate is $1.23.
Next year's average estimate for revenue is $10.94 billion. The average EPS estimate is $5.73.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 187 members out of 209 rating the stock outperform, and 22 members rating it underperform. Among 76 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 72 give Stanley Black & Decker a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Stanley Black & Decker is outperform, with an average price target of $77.91.
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