#Stanley #Black #Decker #Stock #Falls #Tool #Company #Reports #Consumer #Auto #Weakness
Key takeaways
- Stanley Black & Decker missed earnings and sales estimates due to weak demand from consumers and the auto sector. Gross margin expanded thanks to improvements in the toolmaker’s supply chain.
- The tool company narrowed its full-year adjusted earnings per share forecast.
- The news sent its shares into negative territory for the year so far.
Stanley Black & Decker (SWK) shares fell as the tool maker reported worse-than-expected results and narrowed its guidance, citing lower consumer demand and a slowdown in the auto sector.
The company reported third-quarter diluted earnings per share (EPS) of $0.60, with revenues down 5.1% to $3.75 billion. Analysts surveyed by Visible Alpha were looking for $0.87 and $3.80 billion, respectively. Sales in the Tools and Outdoors division fell 3% to $3.26 billion with lower volumes due to consumer weakness and a do-it-yourself backdrop. Sales at the industrial unit fell 18% to $488 million due to what the company called “market weakness in the automotive segment.”
Stanley Black & Decker now sees adjusted EPS of $3.90 to $4.30 compared to its previous forecast of $3.70 to $4.50.
The news sent Stanley Black & Decker shares into negative territory for the year, with the stock recently down about 8%.
Gross margin improved to 29.9% from 26.8% a year earlier, which Stanley Black & Decker attributed to supply chain improvements.
CFO Patrick Hallinan said the company’s top priorities “continue to be margin expansion, cash generation and balance sheet strength to position the company for long-term growth and value creation.”
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#Stanley #Black #Decker #Stock #Falls #Tool #Company #Reports #Consumer #Auto #Weakness
