Stanley Black & Decker | $SWK Stock | Shares Surge On Strong Q2 Earnings

Stanley Black & Decker

Stanley Black & Decker, Inc. (NYSE: SWK)


Stanley Black & Decker, Inc. shares climbed to $144.50 in the first minutes of regular trading on Friday, having closed the previous session at $139.65.

The second-quarter financial results of the Connecticut-based tools manufacturer finished above analyst expectations, sending its stock on an upward run.

However, the company was forced to cut its profit forecast by $0.40 after two of its subsidiaries agreed to a $42 million settlement with U.S. Environmental Protection Agency in July.

The regulator found Black & Decker and Emhart Industries, Inc. responsible for contaminated soil and hazardous waste on a Rhode Island site.

SWK Earnings & Outlook

The company earned $293.6 million, or $1.93 per share, versus $277.6 million, or $1.82 per share, in the second quarter of the previous year. Adjusted earnings totaled to $391.8 million or $2.57 per share during the quarter.

Revenue for the quarter was $3.64 billion, up 10.6% from $3.29 billion last year. Analysts polled by Thompson Reuters had modelled adjusted earnings of $2.01 per share on $3.50 billion revenue.

SWK expects its yearly adjusted earnings to be in the range of $8.30 to $8.50 per share.

Stanley Black & Decker CEO Comments

James M. Loree, Stanley Black & Decker Chief Executive Officer said, “We delivered a strong second quarter performance, successfully overcoming approximately $70 million of commodity and currency pressure. Total revenues were up 11%, with each business contributing. Organic growth accelerated to 7%, headlined by an impressive 10% growth from Tools & Storage as well as Industrial outperforming our expectations.”

“The underlying markets remain healthy and provide a favorable backdrop as we execute our robust pipeline of organic growth initiatives: The Lenox and Irwin revenue synergies, FlexVolt, emerging markets, e-commerce and the rollout of the Craftsman brand. We will continue to evaluate further near-term capital allocation actions to create shareholder value including acquisition opportunities and incremental share repurchases, consistent with our long-term capital allocation strategy.”

Stanley Black & Decker, Inc. Company Profile

Stanley Black & Decker, Inc. provides power tools, hand tools, mechanical access solutions, electronic monitoring and monitoring systems, and engineered fastening systems services and products for various applications. Its operates through three segments: Tools & Storage, Security and Industrial.

The Tools & Storage segment provides professional products, such as cordless and corded electric power equipment and tools, impact drivers and wrenches, routers, drills, grinders, sanders, and saws. It also fasteners and pneumatic tools, including staples, staplers, nails, and nail guns.

In addition, it offers masonry and concrete anchors, edgers, lawn mowers, string and hedge trimmers, cleaning appliances, hand-held vacuums, and paint tools.

This segment also offers vises, hammers, chisels, demolition tools, knives, clamps, and automotive and industrial equipment, as well as layout, measuring, and leveling equipment.

The Industrial segment markets and distributes engineered fastening systems and products, including blind tools and rivets, blind tools and inserts, drawn arc systems and weld studs, mechanical fasteners and engineered plastics, micro fasteners, self-piercing riveting systems, high-strength structural fasteners, and precision nut running systems.

Its Security division provides system maintenance integration, fire alarm monitoring, healthcare solutions, video surveillance, and system maintenance services. Stanley Black & Decker, Inc. was founded in 1843 and is based in New Britain, CT. –Reuters