Stanley Black & Decker Navigates Tough Q4: Sales Dip But Beats EPS Expectations, Eyes Steady 2024
Portfolio Pulse from Akanksha Bakshi
Stanley Black & Decker Inc (NYSE:SWK) reported a Q4 FY23 sales decline of 6% YoY to $3.74 billion, missing expectations. However, adjusted EPS of $0.92 beat the consensus. The company saw gross margin expansion and reduced inventory, leading to significant cash flow generation. For 2024, SWK expects GAAP EPS of $1.60-$2.85 and Adjusted EPS of $3.50-$4.50, with organic revenue expected to be flat YoY. Shares fell 2.27% to $91.18.
February 01, 2024 | 6:04 pm
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NEGATIVE IMPACT
Stanley Black & Decker reported a decline in Q4 sales but exceeded EPS expectations. The company anticipates flat revenue growth in 2024 but expects a steady EPS. Shares dropped 2.27%.
The decline in Q4 sales and the subsequent drop in share price indicate a negative short-term impact. However, the beat on EPS expectations and a positive outlook for 2024 might mitigate some of the negative sentiment. The immediate reaction in share price reflects market disappointment in sales performance, outweighing the positive EPS beat.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100