Stanley Black & Decker Beats on Both Top and Bottom Lines

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Stanley Black & Decker (NYS: SWK) reported earnings on Jan. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 29 (Q4), Stanley Black & Decker beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank and GAAP earnings per share grew significantly.


Gross margins dropped, operating margins shrank, net margins grew.

Revenue details
Stanley Black & Decker booked revenue of $2.67 billion. The 10 analysts polled by S&P Capital IQ predicted revenue of $2.59 billion on the same basis. GAAP reported sales were 4.4% lower than the prior-year quarter's $2.79 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.37. The 12 earnings estimates compiled by S&P Capital IQ anticipated $1.28 per share. GAAP EPS of $2.99 for Q4 were 202% higher than the prior-year quarter's $0.99 per share. (The prior-year quarter included -$0.06 per share in earnings from discontinued operations.)

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 35.5%, 10 basis points worse than the prior-year quarter. Operating margin was 8.3%, 210 basis points worse than the prior-year quarter. Net margin was 18.4%, 1,250 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.59 billion. On the bottom line, the average EPS estimate is $1.23.

Next year's average estimate for revenue is $10.94 billion. The average EPS estimate is $5.73.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 187 members out of 209 rating the stock outperform, and 22 members rating it underperform. Among 76 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 72 give Stanley Black & Decker a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Stanley Black & Decker is outperform, with an average price target of $77.91.

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The article Stanley Black & Decker Beats on Both Top and Bottom Lines originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere

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