Stanley Black & Decker Earnings: Increasing Costs Tighten Margins as Net Income Falls

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S&P 500 (NYSE:SPY) component Stanley Black & Decker Inc. (NYSE:SWK) reported its results for the second quarter. Stanley Black & Decker supplies tools and engineered solutions for professional, industrial, construction, and do-it-yourself use, as well as security solutions for industrial and commercial applications.

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Stanley Black & Decker Inc. Earnings Cheat Sheet

Results: Net income for the machine tools and related products fell to $154.8 million (92 cents per share) vs. $197.3 million ($1.14 per share) a year earlier. This is a decline of 21.5% from the year-earlier quarter.

Revenue: Rose 8.1% to $2.81 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Stanley Black & Decker Inc. fell short of the mean analyst estimate of $1.52 per share. It fell short of the average revenue estimate of $2.9 billion.

Key Stats:

The company has now seen net income fall in each of the last two quarters. In the first quarter, net income fell 23.3% from the year-earlier quarter.

The company has now fallen short of estimates in the last two quarters. In the first quarter, it missed expectations by 4 cents with net income of $1.09 versus a mean estimate of net income of $1.13 per share.

Looking Forward: For the next quarter, analysts are growing pessimistic about the company’s expected results. The average estimate for the third quarter is $1.60 per share, dropping from $1.62 a month ago. The average estimate for the fiscal year is $5.77 per share, down from $5.87 ninety days ago.

Competitors to Watch: P & F Industries, Inc., Snap-on Incorporated, Einhell Germany AG, and Techtronic Industries Co. Ltd.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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