Stanley Black & Decker Q2 2024 Earnings Report
Key Takeaways
Stanley Black & Decker reported second-quarter revenues of $4.0 billion, a 3% decrease versus the prior year. However, the company saw improvements in gross margin and strong cash generation, supported by debt reduction.
Revenues were $4.0 billion, down 3% versus prior year, with organic revenue growth of 1% led by DEWALT, Outdoor Products and Engineered Fastening.
Gross margin was 28.4%, up 600 basis points versus prior year.
GAAP EPS was ($0.13); Adjusted EPS was $1.09.
Cash from operating activities was $573 million and free cash flow was $486 million.
Stanley Black & Decker
Stanley Black & Decker
Stanley Black & Decker Revenue by Segment
Forward Guidance
Management is updating its guidance ranges and expects 2024 GAAP EPS to be in the range of $0.90 to $2.00. Adjusted EPS is expected to be between $3.70 to $4.50. Free cash flow is increased to be approximately $650 million to $850 million.
Positive Outlook
- Focused on executing supply chain improvements to further improve gross margin and earnings in the second half of 2024.
- Progress to date supports improved full year adjusted earnings and free cash flow outlook.
- Actions to drive toward target of 35%+ adjusted gross margins.
- Funding additional organic revenue growth investments will continue generating positive results.
- Top priorities remain delivering margin expansion, cash generation and balance sheet strength to position the Company for long-term growth and value creation.
Challenges Ahead
- GAAP EPS range revised to $0.90 to $2.00 (From $1.60 to $2.85) primarily due to the second quarter environmental reserve adjustments.
- Expects second half free cash flow to fund the cash dividend.
- Expects second half free cash flow to support an additional $400 - $500 million short term debt reduction by year end.
- Difference between 2024 GAAP and adjusted EPS guidance is approximately $2.50 to $2.80.
- Difference consists primarily of charges related to the supply chain transformation under the Global Cost Reduction Program and environmental reserve adjustments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income