Why Industrial Tools Maker Stanley Black & Decker's Shares Are Trading Higher Today
Portfolio Pulse from Shivani Kumaresan
Stanley Black & Decker Inc (NYSE:SWK) reported a 4.1% YoY decline in Q3 FY23 sales to $3.953 billion, missing the analyst consensus estimate of $3.965 billion. The revenue decline is primarily due to lower outdoor and DIY volume and attachment tool customer destocking. However, gross profit increased 4.2% to $1.06 billion, and the gross margin expanded 210 basis points to 26.8%. Adjusted EPS of $1.05 beat the analyst consensus estimate of $0.83. The company raised its FY23 EPS outlook and reiterated its target for 2023 free cash flow generation.
October 27, 2023 | 12:46 pm
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Stanley Black & Decker reported lower than expected sales but higher than expected profits and EPS. The company also raised its FY23 EPS outlook, which may have contributed to the stock trading higher.
Despite the sales miss, Stanley Black & Decker's higher profits, EPS beat, and raised FY23 EPS outlook are positive signals for investors. These factors likely contributed to the stock trading higher in the short term.
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