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Connecticut-based Stanley Black & Decker Inc. (SWK), with a market cap of $13.4 billion, manufactures tools and accessories and provides engineered fastening systems and other services. The company operates under the Industrial and Tools & Storage segments. It is expected to announce its fiscal Q2 earnings results before the market opens on Tuesday, Jul. 30.
Ahead of the event, analysts expect SWK to report a profit of $0.84 per share, a whopping 863.6% rise from a loss of $0.11 per share in the year-ago quarter. The company has surpassed Wall Street’s bottom-line estimates in all of the past four quarters. It reported an EPS of $0.56 in the latest quarter, beating the consensus estimate by 1.8%.
Over the longer term, analysts expect Stanley Black & Decker’s EPS to rise by 179.3% from $1.45 in fiscal 2023 to $4.05 in fiscal 2024. The company’s EPS is projected to increase 33.6% in fiscal 2025 to $5.41.
SWK stock has dipped 9.8% over the past 52 weeks, underperforming the S&P 500 Index's ($SPX) 25% gains and the Industrial Select Sector SPDR Fund’s (XLI) 15.2% returns over the same time frame.
Stanley Black & Decker faced a challenging first half of 2024, reflected in an 18.6% stock price decline, according to S&P Global Market Intelligence. The company had experienced a surge in sales during lockdowns but encountered significant challenges as economies reopened due to tough sales comparisons post-lockdown, coupled with elevated supply chain costs.
Moreover, the stock dropped 7.5% on May 2 following the announcement of its Q1 earnings result. Despite topping both EPS and revenue estimates, the company failed to impress investors due to lower infrastructure volume and subdued consumer and DIY demand.
Analysts' consensus view on Stanley Black & Decker stock is cautious, with an overall "Hold" rating. Among 15 analysts covering the stock, four recommend a "Strong Buy," nine advise a "Hold," and two suggest a “Strong Sell.”
The average analyst price target for SWK is $92.70, suggesting a potential upside of 6.6% from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
