Earnings Review and Free Research Report: Stanley Black & Decker’s Quarterly Revenue Jumped 10%; Adjusted EPS Rose 9.2%

Research Desk Line-up: Proto Labs Post Earnings Coverage

LONDON, UK / ACCESSWIRE / July 31, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Stanley Black & Decker, Inc. (NYSE: SWK) (“SWK”), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=SWK, following the Company’s reporting of its financial results on July 24, 2017, for the second quarter fiscal 2017. The power tools manufacturer surpassed top- and bottom-line expectations and also raised its earnings forecasts for the fiscal year. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Get more of our free earnings reports coverage from other constituents of the Machine Tools & Accessories industry. Pro-TD has currently selected Proto Labs, Inc. (NYSE: PRLB) for due-diligence and potential coverage as the Company announced on July 27, 2017, its financial results for Q2 2017 which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Proto Labs when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on SWK; also brushing on PRLB. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=SWK

http://protraderdaily.com/optin/?symbol=PRLB

Earnings Reviewed

SWK’s net sales for the second quarter were $3.23 billion, up 10% versus sales of $2.93 billion in Q2 2016, as positive volume and acquisitions more than offset divestitures price and currency impact. The Company’s revenue numbers topped analysts’ expectations of $3.18 billion.

During Q2 2017, SWK’s gross margin rate was 37.5%. Excluding charges, the Company’s gross margin rate was 38.3%, relatively flat to Q2 2016 as volume leverage and productivity were offset by price, currency, and commodity inflation. SWK’s operating margin rate was 14.7% in the reported quarter while excluding charges, operating margin rate was 15.7% compared to a post-merger record 15.8% rate in Q2 2016.

SWK reported earnings of $277.2 million, or $1.82 per share, for Q2 2017 compared with earnings of $217.5 million, or $1.84 per share, in Q2 2016. The Company’s adjusted earnings were $2.01 per share compared with a Wall Street’s estimates of $1.97 per share.

Segment Results

During Q2 2017, SWK’s Tools & Storage net sales surged 17% on y-o-y basis to $2.26 billion as volume growth of 9% and acquisitions of 11% more than offset impact of divestitures, price, and currency. During the reported quarter, Tools & Storage segment profit rate, excluding charges, was 18.1%, down from the record year ago rate of 18.8%, as benefits of volume leverage and productivity were more than offset by growth investments, price, and commodity inflation.

SWK’s Security net sales fell 12% on a y-o-y basis to $474 million as volume, price, and small bolt-on electronic security acquisitions were more than offset by the sale of the Mechanical Security business and currency. In the reported quarter, the Security segment’s profit rate, excluding charges, was 11.1%, down compared to 12.6% in the prior year’s same quarter, reflecting an approximately 120 basis point decline related to the sale of the Mechanical Security business, as well as impacts of mix and funding growth investments.

For Q2 2017, SWK’s Industrial net sales increased 7% on a y-o-y basis to $496 million driven by a 9% growth in volume, partially offset by currency. The segment’s Engineered Fastening organic revenues increased 6%, driven by strong automotive system shipments supporting new customer platforms and volume growth within general industrial. Infrastructure organic revenues were up 19% on expanded Hydraulic Tools volumes from successful commercial actions and improved market conditions as well as higher Oil & Gas volumes from accelerated North American pipeline project and inspection activity. The Industrial segment’s profit rate for the reported quarter was 19.4% as volume leverage, productivity gains, and cost control resulted in a 240 basis point expansion versus the prior year’s same quarter rate.

Cash Matters

During Q2 2017, SWK’s free cash flow was $134 million compared to $417.7 million in Q2 2016. The Company’s year-to-date free cash flow performance was a use of cash of $76 million compared to positive free cash flow of $259.7 million. The quarterly and year-to-date declines were predominantly attributed to carrying higher amounts of working capital relative to the outsized level of organic growth the Company was experiencing primarily within the Tools & Storage business.

2017 Outlook

SWK’s management raised its 2017 earnings forecasts to $8.05 – $8.25 per share from the earlier announcement of $7.95 – $8.15 per share on a GAAP basis and to $7.18 – $7.38 per share from $7.08 – $7.28 on an adjusted basis, as it expects stronger full year results attributable primarily to higher organic growth expectations. The Company is also reiterating its free cash flow conversion estimate of approximately 100%.

Stock Performance

On Friday, July 28, 2017, the stock closed the trading session at $139.88, marginally down 0.89% from its previous closing price of $141.14. A total volume of 918.93 thousand shares have exchanged hands. Stanley Black & Decker’s stock price rallied 2.74% in the last three months, 11.88% in the past six months, and 14.50% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have surged 21.96%. The stock is trading at a PE ratio of 17.92 and has a dividend yield of 1.80%. At Friday’s closing price, the stock’s net capitalization stands at $21.62 billion.

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