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Mar 31, 2021
Stanley Black & Decker Q1 2021 Earnings Report
Reported record first quarter 2021 results driven by strong organic growth, margin expansion, and record adjusted EPS.
Key Takeaways
Stanley Black & Decker reported a strong first quarter in 2021, with revenue reaching $4.2 billion, a 34% increase compared to the prior year. The company's diluted GAAP EPS was $2.98, and excluding charges, the diluted EPS was $3.13, up 161% versus prior year. As a result of this strong performance, the company is raising its 2021 diluted GAAP EPS guidance range to $10.15 - $10.55.
Revenues totaled $4.2 billion, up 34% versus prior year, led by Tools & Storage with all segments contributing to 31% organic growth.
Gross margin was 37.3%; excluding charges, gross margin was 37.4%, up 440 basis points versus prior year.
Operating margin was 16.9%; excluding charges, operating margin was 17.6%, up 760 basis points versus prior year, driven by volume, price, cost control, and margin resiliency.
Diluted GAAP EPS was $2.98; excluding charges, diluted EPS was $3.13, up 161% versus prior year.
Stanley Black & Decker
Stanley Black & Decker
Stanley Black & Decker Revenue by Segment
Revenue by Segment
Tools & Outdoor Revenue
CapyFin.com Forward Guidance
Management is raising and narrowing its 2021 EPS outlook to $10.15 - $10.55 from $9.15 To $9.85 on a GAAP basis, and to $10.70 - $11.00 from $9.70 - $10.30 on an adjusted basis. The Company is also reiterating free cash flow to approximate net income.
Positive Outlook
- Stronger organic growth
- Incremental pricing
- Margin resiliency actions
- Improved demand outlook across most of our businesses
- Positioned the Company to deliver above-market organic growth with operating leverage, strong free cash flow generation and top-quartile shareholder returns over the long-term.
Challenges Ahead
- Increased commodity inflation
- Second half which could be much stronger than our current guidance
- Potential adverse developments in new or pending litigation and/or government investigations
- Potential regulatory liabilities, including environmental, privacy, data breach, workers compensation and product liabilities
- The continued adverse effects of the COVID-19 pandemic and an indeterminate recovery period