Stanley Black & Decker Q4 Earnings Beat Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy SWK?
Source: seekingalpha
- Earnings Beat: Stanley Black & Decker reported a Q4 non-GAAP EPS of $1.41, exceeding expectations by $0.13, indicating resilience in profitability despite revenue shortfalls.
- Flat Revenue Performance: The company’s Q4 revenue stood at $3.7 billion, flat year-over-year, missing expectations by $80 million, reflecting weak market demand that may impact future growth strategies.
- Optimistic Future Outlook: The company expects 2026 GAAP EPS to range from $3.15 to $4.35, with adjusted EPS between $4.90 and $5.70, suggesting potential midpoint growth of 42% and 13%, showcasing management's confidence in future performance.
- Free Cash Flow Target: Stanley Black & Decker aims for free cash flow in the range of $700 to $900 million, reflecting a 16% increase at the midpoint, which will support future investments and debt management, enhancing financial flexibility.
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Analyst Views on SWK
Wall Street analysts forecast SWK stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SWK is 84.89 USD with a low forecast of 69.00 USD and a high forecast of 98.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
5 Buy
3 Hold
1 Sell
Moderate Buy
Current: 79.150
Low
69.00
Averages
84.89
High
98.00
Current: 79.150
Low
69.00
Averages
84.89
High
98.00
About SWK
Stanley Black & Decker Inc. is a global provider of hand tools, power tools, outdoor products and related accessories, as well as a provider of engineered fastening solutions. The Company’s segments include Tools & Outdoor and Engineered Fastening. The Tools & Outdoor segment is comprised of the Power Tools Group (PTG), Hand Tools, Accessories & Storage (HTAS) and Outdoor Power Equipment (Outdoor) product lines. The PTG product line includes both professional and consumer products. The HTAS product line sells hand tools, power tool accessories and storage products. The Outdoor product line primarily sells corded and cordless electric lawn and garden products. The Engineered Fastening segment primarily sells highly engineered components such as fasteners, fittings and various engineered products, which are designed for specific application across multiple verticals. The Company's portfolio of brands includes DEWALT, CRAFTSMAN, STANLEY, BLACK+DECKER, and Cub Cadet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Stanley Black & Decker to Announce Q4 Earnings on February 4
- Earnings Announcement: Stanley Black & Decker is set to release its Q4 2023 earnings report on February 4 before market open, with consensus EPS estimate at $1.28, reflecting a 14.1% year-over-year decline, while revenue is expected to reach $3.78 billion, marking a 2.2% increase year-over-year.
- Historical Performance: Over the past two years, Stanley Black & Decker has consistently beaten EPS estimates 100% of the time and revenue estimates 63% of the time, indicating a strong track record of exceeding financial forecasts.
- Estimate Revisions: In the last three months, EPS estimates have seen no upward revisions but 14 downward adjustments, while revenue estimates also faced no upward revisions and 9 downward adjustments, suggesting a cautious market outlook on the company's future performance.
- Acquisition Activity: Howmet Aerospace is set to acquire Consolidated Aerospace Manufacturing from Stanley Black & Decker for $1.8 billion, highlighting Stanley's significant role in industry consolidation efforts.
See More
Stanley Black & Decker Reports 2025 Financial Results: Gross Margin and Net Income Growth
- Strong Financial Performance: Stanley Black & Decker reported fourth-quarter net sales of $3.684 billion, a 2% year-over-year decline, yet gross margin improved to 33.2% due to a 5% price increase and 2% favorable currency effects, demonstrating the company's resilience and adaptability in a dynamic market environment.
- Significant Cost Savings: The Global Cost Reduction Program, initiated in mid-2022, has achieved approximately $2.1 billion in pre-tax savings, with $120 million realized in the fourth quarter alone, indicating the company's strategic execution in continuous improvement and operational efficiency.
- Debt Reduction Strategy: The company announced a definitive agreement to divest its CAM business for $1.8 billion in cash, expected to close in the first half of 2026, with net proceeds projected between $1.525 billion and $1.6 billion, aimed at further reducing debt leverage and enhancing financial stability.
- Positive Future Outlook: Stanley Black & Decker anticipates 2026 EPS in the range of $3.15 to $4.35, reflecting a 42% growth, and targets free cash flow between $700 million and $900 million, showcasing the company's confidence and strategic positioning for future growth.
See More
Stanley Black & Decker Q4 Earnings Beat Expectations
- Earnings Beat: Stanley Black & Decker reported a Q4 non-GAAP EPS of $1.41, exceeding expectations by $0.13, indicating resilience in profitability despite revenue shortfalls.
- Flat Revenue Performance: The company’s Q4 revenue stood at $3.7 billion, flat year-over-year, missing expectations by $80 million, reflecting weak market demand that may impact future growth strategies.
- Optimistic Future Outlook: The company expects 2026 GAAP EPS to range from $3.15 to $4.35, with adjusted EPS between $4.90 and $5.70, suggesting potential midpoint growth of 42% and 13%, showcasing management's confidence in future performance.
- Free Cash Flow Target: Stanley Black & Decker aims for free cash flow in the range of $700 to $900 million, reflecting a 16% increase at the midpoint, which will support future investments and debt management, enhancing financial flexibility.
See More
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Company Focus: Anthropic, a key player in the AI sector, is highlighted amidst the broader market challenges.
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CRAFTSMAN Launches Red Zone Giveaway
- Interactive Giveaway: CRAFTSMAN has launched a 'Red Zone Giveaway' on Instagram, allowing viewers to comment 'V20 Giveaway' for a chance to win up to $20,000 in V20 cordless power tools and retailer gift cards each quarter, significantly enhancing brand engagement with consumers.
- Simplified Participation Rules: Participants must follow the official rules and tune into CRAFTSMAN's Instagram Live on February 8, 2026, where a winner will be randomly selected each quarter, ensuring fairness and transparency in the giveaway process.
- Brand Promotion Collaboration: CRAFTSMAN has partnered with creators like Isaac Rochell and Darien Rencher to amplify the event's appeal, leveraging their influence to attract more viewers and further enhance brand visibility.
- Showcasing Product Diversity: This initiative not only promotes the versatility of the V20 tool series but also highlights CRAFTSMAN's leadership in the DIY market, aiming to attract more consumer attention and drive product sales through innovative marketing strategies.
See More
Key Highlights to Monitor This Week: Jobs Report, Amazon, Disney, Alphabet, Palantir, and More
Market Volatility: Last week saw increased volatility in equities, with the S&P 500 ending slightly up and the Nasdaq Composite slightly down after a steady interest rate announcement by the Federal Open Market Committee.
Microsoft's Earnings Impact: Microsoft experienced a significant drop of 10% in its stock value, resulting in a loss of $357 billion in market capitalization following a disappointing earnings report.
Silver Market Collapse: The silver market faced a dramatic decline, falling 31% in a single day, attributed to the nomination of hawkish Kevin Warsh as the next Fed Chair and a prior 50% increase in value this year.
Overall Economic Sentiment: The combination of these events reflects a turbulent economic sentiment, with investors reacting to both corporate earnings and shifts in monetary policy.
See More
Stanley Black & Decker to Announce Q4 Earnings on February 4
- Earnings Announcement: Stanley Black & Decker is set to release its Q4 2023 earnings report on February 4 before market open, with consensus EPS estimate at $1.28, reflecting a 14.1% year-over-year decline, while revenue is expected to reach $3.78 billion, marking a 2.2% increase year-over-year.
- Historical Performance: Over the past two years, Stanley Black & Decker has consistently beaten EPS estimates 100% of the time and revenue estimates 63% of the time, indicating a strong track record of exceeding financial forecasts.
- Estimate Revisions: In the last three months, EPS estimates have seen no upward revisions but 14 downward adjustments, while revenue estimates also faced no upward revisions and 9 downward adjustments, suggesting a cautious market outlook on the company's future performance.
- Acquisition Activity: Howmet Aerospace is set to acquire Consolidated Aerospace Manufacturing from Stanley Black & Decker for $1.8 billion, highlighting Stanley's significant role in industry consolidation efforts.
See More
Stanley Black & Decker Reports 2025 Financial Results: Gross Margin and Net Income Growth
- Strong Financial Performance: Stanley Black & Decker reported fourth-quarter net sales of $3.684 billion, a 2% year-over-year decline, yet gross margin improved to 33.2% due to a 5% price increase and 2% favorable currency effects, demonstrating the company's resilience and adaptability in a dynamic market environment.
- Significant Cost Savings: The Global Cost Reduction Program, initiated in mid-2022, has achieved approximately $2.1 billion in pre-tax savings, with $120 million realized in the fourth quarter alone, indicating the company's strategic execution in continuous improvement and operational efficiency.
- Debt Reduction Strategy: The company announced a definitive agreement to divest its CAM business for $1.8 billion in cash, expected to close in the first half of 2026, with net proceeds projected between $1.525 billion and $1.6 billion, aimed at further reducing debt leverage and enhancing financial stability.
- Positive Future Outlook: Stanley Black & Decker anticipates 2026 EPS in the range of $3.15 to $4.35, reflecting a 42% growth, and targets free cash flow between $700 million and $900 million, showcasing the company's confidence and strategic positioning for future growth.
See More
Stanley Black & Decker Q4 Earnings Beat Expectations
- Earnings Beat: Stanley Black & Decker reported a Q4 non-GAAP EPS of $1.41, exceeding expectations by $0.13, indicating resilience in profitability despite revenue shortfalls.
- Flat Revenue Performance: The company’s Q4 revenue stood at $3.7 billion, flat year-over-year, missing expectations by $80 million, reflecting weak market demand that may impact future growth strategies.
- Optimistic Future Outlook: The company expects 2026 GAAP EPS to range from $3.15 to $4.35, with adjusted EPS between $4.90 and $5.70, suggesting potential midpoint growth of 42% and 13%, showcasing management's confidence in future performance.
- Free Cash Flow Target: Stanley Black & Decker aims for free cash flow in the range of $700 to $900 million, reflecting a 16% increase at the midpoint, which will support future investments and debt management, enhancing financial flexibility.
See More
Analysis and Outlook: A New Decline in Software Performance
Market Trends: The software market is experiencing a significant selloff, indicating a downturn in investor confidence.
Company Focus: Anthropic, a key player in the AI sector, is highlighted amidst the broader market challenges.
See More
CRAFTSMAN Launches Red Zone Giveaway
- Interactive Giveaway: CRAFTSMAN has launched a 'Red Zone Giveaway' on Instagram, allowing viewers to comment 'V20 Giveaway' for a chance to win up to $20,000 in V20 cordless power tools and retailer gift cards each quarter, significantly enhancing brand engagement with consumers.
- Simplified Participation Rules: Participants must follow the official rules and tune into CRAFTSMAN's Instagram Live on February 8, 2026, where a winner will be randomly selected each quarter, ensuring fairness and transparency in the giveaway process.
- Brand Promotion Collaboration: CRAFTSMAN has partnered with creators like Isaac Rochell and Darien Rencher to amplify the event's appeal, leveraging their influence to attract more viewers and further enhance brand visibility.
- Showcasing Product Diversity: This initiative not only promotes the versatility of the V20 tool series but also highlights CRAFTSMAN's leadership in the DIY market, aiming to attract more consumer attention and drive product sales through innovative marketing strategies.
See More
Key Highlights to Monitor This Week: Jobs Report, Amazon, Disney, Alphabet, Palantir, and More
Market Volatility: Last week saw increased volatility in equities, with the S&P 500 ending slightly up and the Nasdaq Composite slightly down after a steady interest rate announcement by the Federal Open Market Committee.
Microsoft's Earnings Impact: Microsoft experienced a significant drop of 10% in its stock value, resulting in a loss of $357 billion in market capitalization following a disappointing earnings report.
Silver Market Collapse: The silver market faced a dramatic decline, falling 31% in a single day, attributed to the nomination of hawkish Kevin Warsh as the next Fed Chair and a prior 50% increase in value this year.
Overall Economic Sentiment: The combination of these events reflects a turbulent economic sentiment, with investors reacting to both corporate earnings and shifts in monetary policy.
See More
