Stanley Black & Decker Reports Earnings and Future Outlook

Stanley Black & Decker sees promising earnings as it forecasts $4.05 EPS for 2025, aiming for strong margin growth. The report highlights a significant recovery in net income, signaling potential for stock price appreciation.

Date: 05-02-2025

AI Rating: 7

Earnings Per Share (EPS): Stanley Black & Decker provided an EPS forecast of $4.05 for 2025, with variability of $0.65. On an adjusted basis, it is planning for an EPS of $5.25, with a range of $0.50. The significant difference between GAAP and adjusted EPS indicates ongoing challenges from supply chain costs.

Net Income: The company's fourth quarter earnings from continuing operations reported a net income of $194.9 million, a notable recovery from a loss of $276.1 million in the same quarter of the previous year. This recovery in net income is a positive indicator for investors.

Profit Margins: The CFO mentioned a goal of achieving adjusted gross margins exceeding 35%. This goal, alongside expected EBITDA expansion through organic growth, reflects a focus on profitability enhancement.

Revenue Growth: For the fourth quarter, Stanley Black & Decker registered revenues of $3.7 billion, which remained flat compared to the prior year. However, the company achieved 3% organic growth and surpassed analysts' revenue expectations of $3.58 billion, indicating underlying strength in its operations.

Stocks: SWK