With a market cap of $9.1 billion, Stanley Black & Decker, Inc. (SWK) provides hand tools, power tools, outdoor products, and related accessories in the United States, Canada, and internationally. Founded in 1843, the New Britain, Connecticut-based company is expected to report its Q1 earnings on Wednesday, Apr. 30, before the market opens.
Ahead of the event, analysts expect SWK to report a profit of $0.68 per share, up 21.4% from a profit of $0.56 per share reported in the year-ago quarter. It has exceeded analysts' earnings estimates in all of the past four quarters, which is impressive. In the previous quarter, it reported an EPS of $1.49, which surpassed the consensus estimate by 16.4%, driven by solid gross margin growth and strong cash generation.
For the current year, analysts expect SWK to report EPS of $5.14, up 17.9% from $4.36 in fiscal 2024. Looking ahead, analysts expect its earnings to surge 23.9% year-over-year to $6.37 per share in fiscal 2026.
Over the past year, SWK shares have tanked 37%, significantly underperforming the S&P 500 Index’s ($SPX) 4.4% gains and the Industrial Select Sector SPDR Fund’s (XLI) 2.4% surge over the same time frame.
SWK shares dropped 1.2% following its Q4 earnings release on Feb. 5. The company reported a revenue of $3.7 billion for the quarter, mainly driven by a growth in its DEWALT and portions of engineered fastening and a 120-basis-point increase in its gross margin, which amounted to 30.8%.
Moreover, analysts remain moderately bullish about SWK stock’s future prospects, with a "Moderate Buy" rating overall. Among 16 analysts covering the stock, six recommend a “Strong Buy,” eight suggest a “Hold,” and two suggest a “Strong Sell.” SWK's mean price of $95.38 implies a premium of 67.9% from its prevailing price level.
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.