Stanley Black & Decker (NYSE:SWK) Issues Earnings Results, Beats Expectations By $0.76 EPS

Stanley Black & Decker (NYSE:SWK) released its quarterly earnings data on Wednesday. The industrial products company reported $2.31 EPS for the quarter, beating the consensus estimate of $1.55 by $0.76, FiscalAI reports. The firm had revenue of $3.73 billion for the quarter, compared to the consensus estimate of $3.74 billion. Stanley Black & Decker had a net margin of 5.53% and a return on equity of 10.22%.

Here are the key takeaways from Stanley Black & Decker’s conference call:

• Third-quarter organic revenue grew 4%, led by 7% volume growth in Tools & Outdoor, with DEWALT, STANLEY, and CRAFTSMAN all growing. Power tools rose 10%, while North American commercial and industrial revenue increased by a mid-teens percentage.
• Stanley Black & Decker raised full-year adjusted EPS guidance to $5.95–$6.25 and free cash flow guidance to $1.0–$1.2 billion. However, the EPS outlook includes a $0.60 net benefit from tariff refunds, and the company said it has received most refunds available through the current process.
• Results included substantial temporary tariff-refund support: refunds contributed $0.67 to third-quarter EPS and about 430 basis points to adjusted gross margin. Management expects meaningful materials inflation in 2027 and plans to address it with productivity measures and price increases, which may be challenging to execute.
• Performance was uneven across businesses: Outdoor organic revenue fell 12% amid weather-related weakness, and Engineered Fastening’s automotive revenue declined 2% as customers grew more cautious. The company also expects automotive softness and inflation to weigh on Engineered Fastening margins.
• Free cash flow was about $836 million year to date, and the company repurchased roughly $250 million of shares in the quarter, completing its prior authorization. The board approved a new $1 billion repurchase authorization, while management said it remains on track for year-end net debt to adjusted EBITDA of around 2.5x.

Stanley Black & Decker Price Performance

SWK traded up $0.28 on Friday, hitting $115.55. 931,772 shares of the stock were exchanged, compared to its average volume of 1,847,130. The firm has a market capitalization of $17.45 billion, a price-to-earnings ratio of 20.65, a PEG ratio of 1.75 and a beta of 1.15. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.42 and a quick ratio of 0.55. Stanley Black & Decker has a 12 month low of $61.90 and a 12 month high of $122.68. The business has a 50-day moving average of $94.40 and a two-hundred day moving average of $86.15.

Stanley Black & Decker Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 22nd. Investors of record on Tuesday, December 1st will be given a dividend of $0.84 per share. The ex-dividend date of this dividend is Tuesday, December 1st. This represents a $3.36 annualized dividend and a yield of 2.9%. Stanley Black & Decker’s dividend payout ratio is currently 60.11%.

Wall Street Analyst Weigh In

Several research firms have weighed in on SWK. Citigroup increased their price objective on Stanley Black & Decker from $107.00 to $140.00 and gave the stock a “buy” rating in a research report on Thursday. The Goldman Sachs Group reiterated a “neutral” rating and issued a $93.00 price objective (up from $82.00) on shares of Stanley Black & Decker in a research note on Wednesday, July 29th. Weiss Ratings reissued a “hold (c+)” rating on shares of Stanley Black & Decker in a report on Thursday, October 29th. Wells Fargo & Company increased their target price on shares of Stanley Black & Decker from $90.00 to $115.00 and gave the stock an “equal weight” rating in a research report on Thursday. Finally, Wall Street Zen cut shares of Stanley Black & Decker from a “strong-buy” rating to a “buy” rating in a report on Saturday, October 24th. Five investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $100.09.

More Stanley Black & Decker News

Here are the key news stories impacting Stanley Black & Decker this week:

• Positive Sentiment: Q3 earnings exceeded expectations, while sales were roughly in line with estimates. The company also raised its outlook, supporting optimism about its operating momentum. Stanley Black & Decker lifts outlook, but tariff refunds boosted Q3
• Positive Sentiment: Stanley Black & Decker announced a $1 billion share-buyback program, which could support shareholder returns and signal confidence in the business. Company announces $1 billion equity buyback
• Positive Sentiment: Citigroup raised its price target to $140 from $107 and maintained a Buy rating, suggesting meaningful potential upside in its view. Citigroup stock recommendations
• Neutral Sentiment: Other target changes were more measured: Baird raised its target to $115 from $102, while Wells Fargo raised its target to $115 from $90 but kept an Equal Weight rating. Baird price-target update Wells Fargo stock recommendations
• Negative Sentiment: Tariff refunds contributed to the Q3 earnings beat, raising a question about how much of the improvement is repeatable. That one-off boost may temper enthusiasm despite the higher outlook. Q3 earnings beat driven by tariff refunds

About Stanley Black & Decker

Stanley Black & Decker, Inc is a global manufacturer of tools, outdoor products and related equipment. The company serves professional contractors, industrial customers, do-it-yourself consumers and outdoor enthusiasts through a portfolio that includes power tools, hand tools, storage solutions, accessories, lawn and garden equipment, and other outdoor products.

Its brands include DEWALT, CRAFTSMAN, STANLEY, BLACK+DECKER, Cub Cadet, Hustler and Troy-Bilt. Products are sold through retailers, distributors, e-commerce channels and other commercial outlets, supporting construction, maintenance, manufacturing, automotive repair and residential applications.

The company was formed in 2010 through the merger of The Stanley Works and The Black & Decker Corporation.