Manufacturing company Stanley Black & Decker (NYSE: SWK) will be reporting earnings this Tuesday morning. Here’s what to look for.
Stanley Black & Decker missed analysts’ revenue expectations by 1.7% last quarter, reporting revenues of $3.95 billion, down 2% year on year. It was a satisfactory quarter for the company, with a beat of analysts’ EPS estimates but a miss of analysts’ organic revenue estimates.
Is Stanley Black & Decker a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Stanley Black & Decker’s revenue to be flat year on year at $3.77 billion, improving from the 5.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.19 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Stanley Black & Decker has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Stanley Black & Decker’s peers in the professional tools and equipment segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Fortive delivered year-on-year revenue growth of 2.3%, beating analysts’ expectations by 1.8%, and ESAB reported revenues up 8.1%, topping estimates by 4.6%. Fortive traded up 4.2% following the results while ESAB was down 2.5%.
Read our full analysis of Fortive’s results here and ESAB’s results here.
Investors in the professional tools and equipment segment have had steady hands going into earnings, with share prices flat over the last month. Stanley Black & Decker is down 8% during the same time and is heading into earnings with an average analyst price target of $86.32 (compared to the current share price of $68.42).
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