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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.
