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Stanley Black Gears Up to Report Q1 Earnings: What's in Store?

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Stanley Black & Decker, Inc. (SWK - Free Report) is scheduled to release first-quarter 2025 results on April 30, before market open.

(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

The Zacks Consensus Estimate for this New Britain, CT-based tool maker’s first-quarter revenues is pegged at $3.73 billion, indicating a decline of 3.6% from the year-ago quarter. The consensus estimate for adjusted earnings is pinned at 68 cents per share. The figure indicates an increase of 21.4% from the year-ago quarter’s number.

The consensus estimate for earnings has been stable over 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 16.2%.

Let’s see how things have shaped up for Stanley Black before the announcement.

Factors Likely to Have Shaped SWK’s Quarterly Performance

Stanley Black’s Tools & Outdoor segment’s results are expected to benefit from the solid momentum in the Engineered Fastening business, driven by strength in its DEWALT business and solid demand for several brands like POWERSHIFT, Construction Jack and TOUGHSYSTEM. However, persistent softness in the DIY market and tepid demand for power tools are expected to have hurt the segment’s performance. We expect the Tools & Outdoor segment’s revenues to decline 2% year over year to $3.2 billion.

Persistent softness in the automotive end market, owing to headwinds in the global automotive OEM light vehicle production, is likely to have hurt the Industrial segment’s performance. Also, the divestiture of SWK’s infrastructure business is likely to have weighed on the segment’s year-over-year top-line comparison. We expect the Industrial segment’s revenues to decline 16% year over year to $489.3 million.

Nonetheless, SWK’s cost-reduction program is likely to have supported its bottom line. The company is expected to have put up a healthy margin performance, aided by supply-chain transformation and inventory reduction efforts. We anticipate SWK’s adjusted gross margin to be 30.5%, indicating an expansion of 150 basis points on a year-over-year basis.

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 Whisper

Our proven model does not conclusively predict an earnings beat for SWK 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 not the case here, as elaborated below.

Earnings ESP: Stanley Black has an Earnings ESP of -3.02% as the Most Accurate Estimate is pegged at 66 cents per share, lower than the Zacks Consensus Estimate of 68 cents. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: SWK presently carries a Zacks Rank #3 (Hold).

Stocks With the Favorable Combination

Here are three companies, which according to our model, have the right combination of elements to post an earnings beat this season.

Emerson Electric Co. (EMR - Free Report) has an Earnings ESP of +1.96% 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 scheduled to release first-quarter 2025 results on May 7. EMR’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 4.3%.

Illinois Tool Works (ITW - Free Report) has an Earnings ESP of +0.15% and a Zacks Rank of 3 at present. The company is slated to release first-quarter results on April 30.

ITW’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.6%.

Parker-Hannifin Corporation (PH - Free Report) has an Earnings ESP of +1.01% and a Zacks Rank of 3 at present. The company is slated to release its third-quarter fiscal 2025 results on May 1.

PH delivered an average earnings surprise of 5.4% in the last four quarters, while beating estimates in each of the quarters.

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