Stanley Black & Decker, Inc. SWK reported fourth-quarter 2024 adjusted earnings of $1.49 per share, which beat the Zacks Consensus Estimate of $1.28. The bottom line increased 62% year over year.
Stanley Black’s net sales of $3.72 billion beat the consensus estimate of $3.57 billion. The top line declined 0.4% year over year due to weakness in the Industrial segment.
For 2024, SWK reported net revenues of $15.37 billion, which decreased 2.6% year over year. For the year, the company’s adjusted earnings were $4.36 per share, up 200.7% year over year.
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Stanley Black’s Segmental Discussion
Revenues from SWK’s primary segment, Tools & Outdoor, totaled $3.23 billion, which increased 2.3% year over year. Our estimate for segmental revenues was $3.07 billion.
Revenues from the Industrial segment grossed $492.9 million, down 15.4% year over year. Our estimate for segmental revenues was $493.8 million.
Stanley Black & Decker, Inc. Price, Consensus and EPS Surprise
Stanley Black & Decker, Inc. price-consensus-eps-surprise-chart | Stanley Black & Decker, Inc. Quote
SWK’s Margin Profile
Stanley Black’s cost of sales decreased 2.1% year over year to $2.58 billion. The gross profit increased 3.6% year over year to $1.14 billion. The gross margin increased 120 basis points (bps) year over year to 30.8%.
Selling, general and administrative expenses increased 2.5% year over year to $855.2 million. Adjusted EBITDA was $378.3 million, indicating year-over-year growth of 7.8%. The margin increased 80 bps to 10.2%.
SWK’s Balance Sheet and Cash Flow
While exiting the fourth quarter, Stanley Black had cash and cash equivalents of $290.5 million compared with $449.4 million at the end of fourth-quarter 2023. The long-term debt balance was $5.6 billion, lower than $6.1 billion reported at the end of fourth-quarter 2023.
In 2024, net cash generated in operating activities was $1.11 billion, down 7.1% year over year. Capital and software expenditures totaled $353.9 million, up from $338.7 million reported in the year-ago period. Free cash flow (before dividends) was $753 million compared with $852.6 million a year ago.
In the year, SWK paid out dividends worth $491.2 million to its shareholders, up 1.8% from the year-ago period.
SWK’s 2025 Guidance
Stanley Black expects adjusted earnings to be $5.25 (+/- $0.50) per share. The Zacks Consensus Estimate for earnings is pegged at $5.15 per share. The company anticipates earnings to be $4.05 (+/- $0.65) per share.
SWK’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies
Tetra Tech, Inc. TTEK reported earnings of $0.35 per share in the first quarter of fiscal 2025 (ended December 2024), which beat the Zacks Consensus Estimate of $0.34. This compares with earnings of $0.28 per share a year ago.
Tetra posted revenues of $1.2 billion for the quarter ended December 2024, surpassing the consensus estimate by 8.85%. This compares with year-ago revenues of $1.02 billion. The company topped the consensus estimate for revenues in each of the last four quarters.
Waste Management, Inc. WM reported earnings of $1.70 per share in the fourth quarter of 2024, which missed the Zacks Consensus Estimate of $1.79. This compares with earnings of $1.74 per share a year ago.
WM reported revenues of $5.89 billion for the quarter ended December 2024, surpassing the consensus estimate by 0.18%. This compares with year-ago revenues of $5.22 billion. The company topped the consensus estimate for revenues two times in the last four quarters.
Packaging Corporation of America PKG reported adjusted earnings per share of $2.47 in the fourth quarter of 2024, which missed the Zacks Consensus Estimate of $2.51 by a margin of 2%. The bottom line matched PKG’s guidance and grew 16% year over year.
Sales in the fourth quarter rose 10.7% year over year to $2.15 billion due to higher volumes and price/mix in both segments. The top line beat the consensus estimate of $2.13 billion.
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