SWK Earnings Prediction
The chart below shows how SWK performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SWK sees a -1.66% change in stock price 10 days leading up to the earnings, and a -1.59% change 10 days following the report. On the earnings day itself, the stock moves by +0.21%. This data can give you a slight idea of what to expect for the next quarter's release.
SWK Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
3.72B
-0.43%
-0.82%
Gross Margin
31.18%
4.56%
2.13%
Operating Margin
7.68%
39.13%
4.07%
Net Margin
5.24%
170.91%
115.64%
EPS
1.28
163.05%
113.33%
No Data Available
SWK Earnings Analysis
Stanley Black & Decker Inc Corporation (SWK.N) Earnings Conference Call
Positive
Earnings Performance Exceeds Expectations: Reported EPS of $1.49 exceeded expectations of $1.28, showcasing strong earnings performance.
Stable Revenue Performance: Full year revenues reached $15.4 billion, flat on an organic basis, demonstrating resilience in a challenging market environment.
Gross Margin Improvement: Adjusted gross margin improved to 31.2% in Q4, up 140 basis points year-over-year, driven by supply chain transformation initiatives.
Adjusted EBITDA Performance: Full year adjusted EBITDA was $1.6 billion with a margin of 10.1%, reflecting a 290 basis point expansion compared to 2023.
Free Cash Flow Generation: Free cash flow generation totaled approximately $750 million for the year, supporting debt reduction of $1.1 billion and ongoing capital allocation priorities.
Negative
Flat Fourth Quarter Revenue: Fourth quarter revenue was flat year over year at $3.7 billion, indicating a stagnation in growth despite a 3% organic revenue increase being offset by a 2-point impact from the infrastructure business divestiture and a currency headwind.
Industrial Segment Revenue Decline: The industrial segment experienced a significant 15% decline in revenue on a reported basis, primarily due to the divestiture of the infrastructure business, with organic revenue remaining flat as automotive market softness led to a high single-digit decline in that sector.
Automotive Market Challenges: The automotive business faced a high single-digit organic decline, attributed to reduced light vehicle production schedules and tightened capital expenditure spending, reflecting ongoing challenges in this market.
Muted Demand Outlook: The company anticipates a muted demand environment for the first half of 2025, with expectations of only 1% to 2% organic growth, which is a significant slowdown compared to previous growth rates, indicating potential ongoing market challenges.
Currency Impact on Profit: Currency fluctuations are expected to create a $100 million headwind to profit, with approximately $40 million anticipated as a transactional headwind to gross margin, suggesting that external factors may negatively impact financial performance.
SWK FAQs
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SWK Earning Call Sentiment
Stanley Black & Decker, Inc. (NYSE:SWK) Q4 2024 Earnings Call Transcript
SWK.N
-2.2%Positive
The earnings call presents a mixed picture: strong financial metrics with EPS growth and debt reduction, yet challenges in the automotive market and tariff impacts. Management's optimistic guidance and cost reduction initiatives are positive, but uncertainties in regulatory issues and economic factors like high interest rates pose risks. The Q&A reveals management's evasiveness on certain specifics, adding uncertainty. Without a clear market cap, the stock's reaction is uncertain, leading to a neutral sentiment prediction.
