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The Zacks Consensus Estimate for Stanley Black’s third-quarter earnings has been revised about 1.8% downward in the past 60 days. SWK delivered better-than-expected results thrice in the last four quarters and missed the mark once, the earnings surprise being 6.1%, on average.
Let’s see how things are shaping up for Stanley Black this earnings season.
Factors to Note
SWK’s Industrial segment’s performance is expected to have gained from the ongoing recovery in OEM production and pricing actions. Strong backlogs and healthy demand for aerospace fasteners also might have supported the segment’s growth in the to-be-reported quarter. Our estimate for the segment’s revenues in the third quarter indicates a 7.4% rise from the year-ago reported number. The Zacks Consensus Estimate for the same indicates an 8.8% rise from the year-ago figure.
The company’s December 2021 acquisitions of Excel Industries and MTD Holdings, which have boosted its channel opportunities, strengthened innovation capabilities and enhanced product offerings so far, are expected to have contributed to top-line growth in the third quarter.
However, weakness in its Tools & Outdoor segment, owing to reduced retail and consumer demand, might have dented its third-quarter performance. The Zacks Consensus Estimate for the segment’s operating profit indicates a 77.2% decrease from the year-ago figure.
Also, supply-chain restrictions and increased raw material costs are expected to have adversely impacted margins and profitability in the third quarter. We expect SWK’s gross margin to deteriorate to 25.4% in the third quarter of 2022 from 32.1% reported in the year-ago period.
The rising cost of sales, and selling, general and administrative expenses might have dented SWK’s bottom line. Stanley Black’s overseas business are likely to have been affected by unfavorable movements in foreign currencies in third-quarter 2022.
What Does the Zacks Model Say?
Our proven model does not conclusively predict an earnings beat for Stanley Black this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Stanley Black has an Earnings ESP of -3.45% as the Most Accurate Estimate of 70 cents is below the Zacks Consensus Estimate of 73 cents. You can uncover the best stocks reported with our Earnings ESP Filter.
Stanley Black & Decker, Inc. Price, Consensus and EPS Surprise
Zacks Rank: Stanley Black carries a Zacks Rank #3.
Highlights of Q2 Earnings
Stanley Black reported lackluster second-quarter 2022 results. SWK’s earnings missed the Zacks Consensus Estimate by 16.5% and sales lagged the same by 7.9%.
SWK’s second-quarter adjusted earnings were $1.77 per share, which missed the Zacks Consensus Estimate of $2.12. The bottom line decreased 42.5% from the year-ago quarter’s figure of $3.08. Lower volume, supply-chain restrictions and cost inflation were the spoilsports. Stanley Black’s net sales totaled $4,393 million, reflecting year-over-year growth of 16%.
Stocks to Consider
Here are some companies, which, according to our model, have the right combination of elements to beat on earnings this reporting cycle.
Sonoco Products Company (SON - Free Report) has an Earnings ESP of +4.20% and a Zacks Rank #3 at present. SON is slated to release third-quarter 2022 results on Oct 31.
Sonoco’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 4.1%.
Emerson Electric Co. (EMR - Free Report) currently has an Earnings ESP of +0.81% and a Zacks Rank of 3. EMR is scheduled to release fourth-quarter fiscal 2022 (ended Sep 30, 2022) results on Nov 2.
Emerson’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 6%.
Image: Bigstock
Stanley Black (SWK) to Report Q3 Earnings: What to Expect
Stanley Black & Decker, Inc. (SWK - Free Report) is scheduled to release third-quarter 2022 results on Oct 27, before market open.
The Zacks Consensus Estimate for Stanley Black’s third-quarter earnings has been revised about 1.8% downward in the past 60 days. SWK delivered better-than-expected results thrice in the last four quarters and missed the mark once, the earnings surprise being 6.1%, on average.
Let’s see how things are shaping up for Stanley Black this earnings season.
Factors to Note
SWK’s Industrial segment’s performance is expected to have gained from the ongoing recovery in OEM production and pricing actions. Strong backlogs and healthy demand for aerospace fasteners also might have supported the segment’s growth in the to-be-reported quarter. Our estimate for the segment’s revenues in the third quarter indicates a 7.4% rise from the year-ago reported number. The Zacks Consensus Estimate for the same indicates an 8.8% rise from the year-ago figure.
The company’s December 2021 acquisitions of Excel Industries and MTD Holdings, which have boosted its channel opportunities, strengthened innovation capabilities and enhanced product offerings so far, are expected to have contributed to top-line growth in the third quarter.
However, weakness in its Tools & Outdoor segment, owing to reduced retail and consumer demand, might have dented its third-quarter performance. The Zacks Consensus Estimate for the segment’s operating profit indicates a 77.2% decrease from the year-ago figure.
Also, supply-chain restrictions and increased raw material costs are expected to have adversely impacted margins and profitability in the third quarter. We expect SWK’s gross margin to deteriorate to 25.4% in the third quarter of 2022 from 32.1% reported in the year-ago period.
The rising cost of sales, and selling, general and administrative expenses might have dented SWK’s bottom line. Stanley Black’s overseas business are likely to have been affected by unfavorable movements in foreign currencies in third-quarter 2022.
What Does the Zacks Model Say?
Our proven model does not conclusively predict an earnings beat for Stanley Black this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Stanley Black has an Earnings ESP of -3.45% as the Most Accurate Estimate of 70 cents is below the Zacks Consensus Estimate of 73 cents. You can uncover the best stocks reported with our Earnings ESP Filter.
Stanley Black & Decker, Inc. Price, Consensus and EPS Surprise
Stanley Black & Decker, Inc. price-consensus-eps-surprise-chart | Stanley Black & Decker, Inc. Quote
Zacks Rank: Stanley Black carries a Zacks Rank #3.
Highlights of Q2 Earnings
Stanley Black reported lackluster second-quarter 2022 results. SWK’s earnings missed the Zacks Consensus Estimate by 16.5% and sales lagged the same by 7.9%.
SWK’s second-quarter adjusted earnings were $1.77 per share, which missed the Zacks Consensus Estimate of $2.12. The bottom line decreased 42.5% from the year-ago quarter’s figure of $3.08. Lower volume, supply-chain restrictions and cost inflation were the spoilsports. Stanley Black’s net sales totaled $4,393 million, reflecting year-over-year growth of 16%.
Stocks to Consider
Here are some companies, which, according to our model, have the right combination of elements to beat on earnings this reporting cycle.
Sonoco Products Company (SON - Free Report) has an Earnings ESP of +4.20% and a Zacks Rank #3 at present. SON is slated to release third-quarter 2022 results on Oct 31.
Sonoco’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 4.1%.
Emerson Electric Co. (EMR - Free Report) currently has an Earnings ESP of +0.81% and a Zacks Rank of 3. EMR is scheduled to release fourth-quarter fiscal 2022 (ended Sep 30, 2022) results on Nov 2.
Emerson’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 6%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.