SWK

Stanley Black & Decker Q3 2024 – Revenues Drop 5%

Stanley Black & Decker (NYSE: SWK) has reported its financial results for the third quarter of 2024. The company's third-quarter revenues were $3.8 billion, showing a 5% decrease compared to the prior year. However, the third quarter gross margin saw a notable improvement, standing at 29.9%, which is a significant 310 basis points increase versus the prior year. The adjusted gross margin was even higher at 30.5%, up 290 basis points versus the prior year.

The company's GAAP EPS for the third quarter was $0.60, while the adjusted EPS was reported at $1.22. The cash from operating activities for the third quarter was $286 million, and the free cash flow was approximately $200 million, contributing to around $100 million of debt reduction during the same period.

In terms of segment results, the Tools & Outdoor segment saw a 3% decline in net sales versus the third quarter of 2023, while the Industrial segment experienced an 18% decrease in net sales versus the same period. The Tools & Outdoor segment margin was 10.0%, up 190 basis points versus the prior year, while the Industrial segment margin was 14.4%, up 400 basis points versus the prior year.

The company's global cost reduction program has been a significant driver of its performance, generating $105 million of incremental pre-tax run-rate cost savings in the third quarter of 2024. Since its inception in mid-2022, the program has produced approximately $1.4 billion in pre-tax run-rate savings and reduced inventory by over $2 billion.

Looking ahead, the company's management is narrowing its 2024 EPS guidance ranges, with GAAP EPS expected to be between $1.15 to $1.75 and adjusted EPS to be between $3.90 to $4.30. Free cash flow is reiterated at approximately $650 million to $850 million.

Today the company's shares have moved -10.1% to a price of $92.53. Check out the company's full 8-K submission here.

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