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Mar 31, 2024
Stanley Black & Decker Q1 2024 Earnings Report
Stanley Black & Decker's first quarter performance reflected consistent execution and progress on operational objectives, with gross margin expansion driven by lower inventory destocking costs and supply chain transformation benefits.
Key Takeaways
Stanley Black & Decker reported first-quarter revenues of $3.9 billion, a 2% decrease year-over-year. The company's gross margin increased to 28.6%, up 740 basis points from the prior year. GAAP EPS was $0.13, and adjusted EPS was $0.56. The sale of STANLEY Infrastructure was completed on April 1, with proceeds used to reduce short-term debt.
Revenues were $3.9 billion, down 2% versus prior year.
Gross margin was 28.6%, up 740 basis points versus prior year.
GAAP EPS was $0.13, and adjusted EPS was $0.56.
The company reiterates 2024 full-year guidance with GAAP EPS expected to be $1.60 to $2.85, adjusted EPS of $3.50 to $4.50 and free cash flow of $0.6 billion to $0.8 billion.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Management is reiterating 2024 guidance and expects EPS to be in the range of $1.60 to $2.85 on a GAAP basis, adjusted EPS between $3.50 to $4.50 and free cash flow to approximate $0.6 billion to $0.8 billion.
Positive Outlook
- Strategic transformation progressing successfully.
- Profitability remains on an upward trajectory.
- Disciplined approach to cost management.
- Targeting 35%+ adjusted gross margins.
- Focused on margin expansion, cash generation and balance sheet strength.
Challenges Ahead
- Tepid market backdrop.
- Difference between 2024 GAAP and adjusted EPS guidance is approximately $1.65 to $1.90.
- Charges related to the supply chain transformation under the Global Cost Reduction Program.
- Mixed demand trends expected to persist across businesses in 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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