Stanley Black & Decker Tumbles on Earnings, Revenue Miss, Guidance Cut
2022.07.29 00:30
Stanley Black & Decker (SWK) Tumbles ON Earnings, Revenue Miss, Guidance Cut
By Sam Boughedda
Stanley Black & Decker (NYSE:SWK) shares plummeted over 16% Thursday on the back of its earnings report, revealing that it missed second-quarter earnings and revenue estimates.
The company posted earnings per share of $1.77, $0.36 below the analyst estimate of $2.13, while revenue came in at $4.4 billion, missing the consensus estimate of $4.74 billion.
Revenue did increase 16% compared to the same period last year, with the company saying it was driven by acquisitions in outdoor power equipment and price realization.
The company’s CEO Donald Allan said the macroeconomic environment – including inflation, rising interest rates, and significantly slower demand in late May and June drove the majority of its challenges during the quarter.
“These headwinds underscore the need to accelerate our strategic transformation,” said Allan. “As the softening of the demand environment accelerated rapidly during the last portion of the quarter, we began taking immediate corrective cost actions, which we are continuing to implement. We are now preparing for demand to normalize closer to 2019 levels for the remainder of 2022.”
Looking ahead, Stanley Black & Decker said it sees FY2022 EPS between $5 and $6, below the prior expectation of $9.50 to $10.50 and the consensus of $9.72.
Following the report, CFRA downgraded Stanley Black & Decker shares from Buy to Hold with a price target of $118 from $178.
