Manufacturing company Stanley Black & Decker (NYSE: SWK) will be announcing earnings results this Wednesday morning. Here’s what investors should know.
Stanley Black & Decker beat analysts’ revenue expectations last quarter, reporting revenues of $3.85 billion, up 2.7% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ organic revenue estimates.
Is Stanley Black & Decker a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Stanley Black & Decker’s revenue to be flat year on year, improving from the 2% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Stanley Black & Decker has missed Wall Street’s revenue estimates multiple 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 delivered year-on-year revenue growth of 4.2%, beating analysts’ expectations by 1.1%, and GE Aerospace reported revenues up 24.5%, topping estimates by 6%. Snap-on’s stock price was unchanged after the resultswhile GE Aerospace was down 3.2%.
Read our full analysis of Snap-on’s results here and GE Aerospace’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the industrial machinery stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.3% on average over the last month. Stanley Black & Decker’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $91 (compared to the current share price of $92.80).
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