Stanley Black & Decker Set to Report Q1 Earnings This Week

Stanley Black & Decker, Inc. (SWK), with a market cap of $9.1 billion, manufactures hand tools, power tools, outdoor products, and accessories for markets in the United States, Canada, and beyond. The company, founded in 1843 and headquartered in New Britain, Connecticut, is slated to report its Q1 earnings on Wednesday, April 30, prior to market opening.

In anticipation of the earnings release, analysts project that SWK will report earnings of $0.68 per share. This marks an increase of 21.4% from the $0.56 per share reported in the same quarter last year. Notably, SWK has exceeded earnings estimates in each of the previous four quarters. In Q4, the company reported earnings per share (EPS) of $1.49, beating the consensus estimate by 16.4%, bolstered by solid gross margin growth and strong cash flow.

For the full year, analysts predict SWK’s EPS will reach $5.14, reflecting a 17.9% increase from $4.36 anticipated in fiscal 2024. Looking forward, earnings are expected to rise further by 23.9% year-over-year, reaching $6.37 per share in fiscal 2026.

Over the past year, however, SWK’s shares have fallen by 37%. This contrasts sharply with the S&P 500 Index’s ($SPX) 4.4% rise and a 2.4% increase in the Industrial Select Sector SPDR Fund (XLI) during the same period.

Following the Q4 earnings announcement on February 5, SWK shares fell by 1.2%. The company reported quarterly revenue of $3.7 billion, primarily driven by growth in its DEWALT brand and specific segments of engineered fastening, along with a 120-basis-point increase in gross margin to 30.8%.

Despite recent losses, analysts maintain a moderately optimistic outlook for SWK stock, holding an overall “Moderate Buy” rating. Among the 16 analysts covering the stock, six advocate for a “Strong Buy,” eight recommend a “Hold,” and two suggest a “Strong Sell.” With a mean price target of $95.38, this indicates a potential upside of 67.9% based on the current trading price.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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