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The Zacks Consensus Estimate for earnings has increased 1.2% in the past 30 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average surprise being 31%.
The consensus estimate for this New Britain, CT-based tool maker’s revenues is pegged at $4 billion, indicating a decrease of 3.6% from the year-ago quarter’s figure. The consensus estimate for adjusted earnings is pinned at 85 cents per share. SWK reported a loss of 11 cents per share in the year-ago quarter.
Let’s see how things might have shaped up for Stanley Black prior to the announcement.
Stanley Black & Decker, Inc. Price and EPS Surprise
Stanley Black’s Industrial segment’s results are expected to gain from the strong momentum in the Engineered Fastening business in the quarter, driven by strength in the aerospace and auto end markets.
However, weak demand in the general industrial market is expected to have hurt the performance of the segment. The Zacks Consensus Estimate for the Industrial segment’s revenues is pegged at $527.6 million, indicating a 14.4% decline from the second-quarter 2023 reported number.
The company has been witnessing a slowdown in the industrial sector. Lower demand for hand tools, owing to the softness in the DIY market, is likely to have reflected in the Tools & Outdoor segment’s top-line performance. However, strong demand for the DEWALT product line might have supported its revenues. The consensus estimate for the segment’s revenues is pegged at $3,480.9 million, indicating a 1.7% decrease from the year-ago quarter’s reported number.
SWK’s cost-reduction program is likely to have aided its bottom line. The company is expected to have put up a healthy margin performance, supported by supply-chain transformation and inventory reduction efforts. We anticipate SWK’s adjusted gross margin to be 29.6% compared with 23.6% in the year-ago quarter.
Given the company’s extensive geographic presence, its operations are subject to foreign exchange headwinds. A stronger U.S. dollar is likely to have hurt Stanley Black's overseas business.
Earnings Whispers
Our proven model predicts 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 odds of an earnings beat, which is the case here, as elaborated below.
Earnings ESP: Stanley Black has an Earnings ESP of +1.47% as the Most Accurate Estimate is pegged at 87 cents per share, which is higher than the Zacks Consensus Estimate of 85 cents. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Stanley Black presently carries a Zacks Rank of 3.
Other Stocks to Consider
Here are some other companies within the broader Industrial Products sector, which according to our model, have the right combination of elements to beat on earnings this reporting cycle.
The company is slated to release second-quarter 2024 results on Aug 2. Chart Industries’ earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed the mark twice.
IDEX Corporation (IEX - Free Report) has an Earnings ESP of +0.10% and a Zacks Rank of 3 at present. The company is slated to release second-quarter results on Jul 31.
IEX’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.3%.
Emerson Electric Co. (EMR - Free Report) has an Earnings ESP of +1.12% and a Zacks Rank of 2 at present. The company is scheduled to release second-quarter results on Aug 7.
EMR’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 10.7%.
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Stanley Black (SWK) to Report Q2 Earnings: Is a Beat in Store?
Stanley Black & Decker, Inc. (SWK - Free Report) is scheduled to release second-quarter 2024 results on Jul 30, before market open.
The Zacks Consensus Estimate for earnings has increased 1.2% in the past 30 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average surprise being 31%.
The consensus estimate for this New Britain, CT-based tool maker’s revenues is pegged at $4 billion, indicating a decrease of 3.6% from the year-ago quarter’s figure. The consensus estimate for adjusted earnings is pinned at 85 cents per share. SWK reported a loss of 11 cents per share in the year-ago quarter.
Let’s see how things might have shaped up for Stanley Black prior to the announcement.
Stanley Black & Decker, Inc. Price and EPS Surprise
Stanley Black & Decker, Inc. price-eps-surprise | Stanley Black & Decker, Inc. Quote
Factors to Note
Stanley Black’s Industrial segment’s results are expected to gain from the strong momentum in the Engineered Fastening business in the quarter, driven by strength in the aerospace and auto end markets.
However, weak demand in the general industrial market is expected to have hurt the performance of the segment. The Zacks Consensus Estimate for the Industrial segment’s revenues is pegged at $527.6 million, indicating a 14.4% decline from the second-quarter 2023 reported number.
The company has been witnessing a slowdown in the industrial sector. Lower demand for hand tools, owing to the softness in the DIY market, is likely to have reflected in the Tools & Outdoor segment’s top-line performance. However, strong demand for the DEWALT product line might have supported its revenues. The consensus estimate for the segment’s revenues is pegged at $3,480.9 million, indicating a 1.7% decrease from the year-ago quarter’s reported number.
SWK’s cost-reduction program is likely to have aided its bottom line. The company is expected to have put up a healthy margin performance, supported by supply-chain transformation and inventory reduction efforts. We anticipate SWK’s adjusted gross margin to be 29.6% compared with 23.6% in the year-ago quarter.
Given the company’s extensive geographic presence, its operations are subject to foreign exchange headwinds. A stronger U.S. dollar is likely to have hurt Stanley Black's overseas business.
Earnings Whispers
Our proven model predicts 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 odds of an earnings beat, which is the case here, as elaborated below.
Earnings ESP: Stanley Black has an Earnings ESP of +1.47% as the Most Accurate Estimate is pegged at 87 cents per share, which is higher than the Zacks Consensus Estimate of 85 cents. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Stanley Black presently carries a Zacks Rank of 3.
Other Stocks to Consider
Here are some other companies within the broader Industrial Products sector, which according to our model, have the right combination of elements to beat on earnings this reporting cycle.
Chart Industries, Inc. (GTLS - Free Report) has an Earnings ESP of +7.99% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is slated to release second-quarter 2024 results on Aug 2. Chart Industries’ earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed the mark twice.
IDEX Corporation (IEX - Free Report) has an Earnings ESP of +0.10% and a Zacks Rank of 3 at present. The company is slated to release second-quarter results on Jul 31.
IEX’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.3%.
Emerson Electric Co. (EMR - Free Report) has an Earnings ESP of +1.12% and a Zacks Rank of 2 at present. The company is scheduled to release second-quarter results on Aug 7.
EMR’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 10.7%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.