Stanley Black & Decker Inc. Earnings: Quarter Lacks Gusto

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S&P 500 (NYSE:SPY) component Stanley Black & Decker Inc. (NYSE:SWK) reported its results for the first 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 Earnings Cheat Sheet for the First Quarter

Results: Net income for Stanley Black & Decker Inc. fell to $121.1 million (72 cents per share) vs. $158.7 million (92 cents per share) a year earlier. This is a decline of 23.7% from the year-earlier quarter.

Revenue: Rose 12.3% to $2.65 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Stanley Black & Decker Inc. reported adjusted net income of $1.09 per share. By that measure, the company fell short of mean estimate of $1.13 per share. Analysts were expecting revenue of $2.64 billion.

Quoting Management: Stanley Black & Decker’s President and CEO, John F. Lundgren, said, “We commenced 2012 on solid footing amidst a macroeconomic backdrop filled with mixed signals. March 12th marked the two-year anniversary of the Stanley Black & Decker combination and we remain pleased with how the integration has progressed. We are in the final stages of achieving the previously announced annualized cost synergy rate of $485 million as we enter 2013, up from our original forecast of $350 million. Our plans to achieve $300 – $400 million in revenue synergies by 2013 remain on track and we feel confident these projects will drive profitable organic growth as they did in 2011.”

Key Stats:

The company fell short of forecasts after beating estimates in the previous two quarters. In the fourth quarter of the last fiscal year, it topped the mark by 8 cents, and in the third quarter of the last fiscal year, it was ahead by 2 cents.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the second quarter has moved up from $1.51 a share to $1.57 over the last ninety days. For the fiscal year, the average estimate has moved down from $5.92 a share to $5.87 over the last ninety days.

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

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