Manufacturing company Stanley Black & Decker (NYSE: SWK) will be announcing earnings results this Wednesday before market open. Here’s what to look for.
Stanley Black & Decker met analysts’ revenue expectations last quarter, reporting revenues of $3.76 billion, flat year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but full-year EPS guidance slightly missing analysts’ expectations.
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, analysts are expecting Stanley Black & Decker’s revenue to grow 1.3% year on year to $3.77 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $1.28 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Stanley Black & Decker has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Stanley Black & Decker’s peers in the industrial machinery segment, some have already reported their Q4 results, giving us a hint as to what we can expect. GE Aerospace delivered year-on-year revenue growth of 17.6%, beating analysts’ expectations by 13.9%, and Crane reported revenues up 6.8%, topping estimates by 1.9%. GE Aerospace traded down 7.7% following the results while Crane was also down 11.5%.
Read our full analysis of GE Aerospace’s results here and Crane’s results here.
There has been positive sentiment among investors in the industrial machinery segment, with share prices up 7.1% on average over the last month. Stanley Black & Decker is up 1.1% during the same time and is heading into earnings with an average analyst price target of $87.51 (compared to the current share price of $78.90).
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