Earnings Alerts

Stanley Black & Decker (SWK) Earnings: 1Q Net Sales Surpass Estimates, Tools & Outdoor Achieves Higher Adjusted Profit

  • Stanley Black & Decker reported first-quarter net sales of $3.74 billion, exceeding the estimated $3.68 billion.
  • Tools & Outdoor segment sales reached $3.28 billion, surpassing the estimate of $3.21 billion.
  • The adjusted profit for the Tools & Outdoor division was $314.2 million, higher than the estimated $308.2 million.
  • The adjusted profit rate for Tools & Outdoor was 9.6%, slightly below the estimated 9.63%.
  • Inventories were reported at $4.71 billion, higher than the estimated $4.46 billion.
  • Negative free cash flow was $485.0 million, which was more than the estimated negative $318 million.
  • Analyst recommendations include 7 buys, 11 holds, and 2 sells.

Stanley Black & Decker on Smartkarma

Analysts on Smartkarma, such as Baptista Research, are closely covering Stanley Black & Decker, a prominent company in the tools and services sector. In their recent research reports, Baptista Research highlighted the company’s performance in the fourth quarter and full year of 2024. Despite facing challenging market conditions, Stanley Black & Decker achieved notable financial milestones, including maintaining flat full-year revenues of $15.4 billion organically. DEWALT, a segment of the company, also showed resilience with mid-single-digit organic growth, a positive sign amidst a softer consumer and DIY backdrop.

In another report by Baptista Research, the focus was on Stanley Black & Decker‘s market diversification and innovation strategies. The company’s third-quarter earnings for fiscal year 2024 were discussed, revealing a revenue of $3.8 billion, a 5% decline from the previous year. This decrease was primarily attributed to modest declines in volume and negative currency impacts. However, the company showed improvement in its adjusted gross margin, reaching 30.5%, a 290 basis points increase from last year. This improvement was largely credited to effective supply chain transformations rather than shifts in market demand or pricing strategies.


A look at Stanley Black & Decker Smart Scores

FactorScoreMagnitude
Value4
Dividend5
Growth2
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., a renowned global player in hand tools, power tools, and security solutions, is projected to have a promising long-term outlook according to Smartkarma Smart Scores. With a high Dividend score of 5, the company demonstrates strong ability to provide consistent returns to its investors. Additionally, its Value score of 4 suggests that the company is potentially undervalued, presenting an attractive investment opportunity. While Growth and Resilience scores are moderate at 2, the company’s Momentum score of 3 indicates a positive trend in its market performance.

Overall, Stanley Black & Decker‘s diversified portfolio and focus on quality dividends make it a compelling choice for investors seeking stability and income generation. Although there are areas for improvement such as growth and resilience, the company’s strong fundamentals and solid track record position it well for future success in the market.


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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