Manufacturing company Stanley Black & Decker (NYSE: SWK) will be reporting results this Tuesday before market hours. Here’s what to look for.
Stanley Black & Decker beat analysts’ revenue expectations by 1.7% last quarter, reporting revenues of $3.74 billion, down 3.2% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ EPS estimates but a miss of analysts’ adjusted operating income estimates.
Is Stanley Black & Decker a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Stanley Black & Decker’s revenue to be flat year on year at $4.01 billion, improving from the 3.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.42 per share.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing 3 upward revisions over the last 30 days (we track 9 analysts). Stanley Black & Decker has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Stanley Black & Decker’s peers in the industrial machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Snap-on posted flat year-on-year revenue, beating analysts’ expectations by 2.1%, and GE Aerospace reported revenues up 21.2%, topping estimates by 15.6%. Snap-on traded up 7.4% following the results while GE Aerospace was down 1.1%.
Read our full analysis of Snap-on’s results here and GE Aerospace’s results here.
There has been positive sentiment among investors in the industrial machinery segment, with share prices up 6.8% on average over the last month. Stanley Black & Decker is up 9.1% during the same time and is heading into earnings with an average analyst price target of $86.51 (compared to the current share price of $73.93).
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