Stanley Black & Decker (SWK) is a leading global manufacturer of branded tools and engineered solutions for professional, industrial and consumer applications. Also, the company provides integrated access and security solutions to commercial, institutional and residential customers. This New Britain, CT-based company has a $14.2 billion market capitalization.
However, weak industrial activities in the U.S. as well as damper global economy in the fourth-quarter 2014 had adverse impacts on demand for Stanley Black & Decker’s products. To add to the woes, declining oil prices forced some oil-producing companies to curtail their production, adversely impacting the company’s businesses from the oil and gas industry. Also, the company is likely to face severe headwinds from weak Security business and adverse currency translation movements. Investors are eagerly waiting for the company’s latest earnings report.
Stanley Black & Decker’s earnings estimates for 2015 have been revised down in the last few days due to the prevailing economic uncertainties. However, the company’s earnings track record has been quite satisfactory in the trailing four quarters. Better-than-expected results in all four quarters led to an average earnings surprise of +5.97%.
Currently, Stanley Black & Decker has a Zacks Rank #4 (Sell), but that could definitely change after the release of its upcoming earnings report. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: Stanley Black & Decker reported earnings from continuing operations of $1.56 per share in fourth-quarter 2014. The bottom line result came above the Zacks Consensus Estimate of $1.53 per share.
Revenue: Revenues surpassed. Stanley Black & Decker generated revenues of $2,982.5 million, above the Zacks Consensus Estimate of $2,961 million.
Key Stats to Note: Organic revenue in the quarter grew by 7%, partially offset by 4% negative impact from foreign currency movements. As highlighted, foreign currency translation will adversely impact earnings by 70−75 cents per share in 2015 while lower share count will give a boost in the range of 9−12 cents per share.
Stock Price: Stanley Black & Decker shares were down almost 0.87% ahead of the report while no movement has been recorded in the pre-market trading session.
Check back our full write up on this SWK earnings report later!
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