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Sep 30, 2020

Stanley Black & Decker Q3 2020 Earnings Report

Stanley Black & Decker reported record third quarter results driven by organic growth in Tools & Storage and effective cost actions.

Key Takeaways

Stanley Black & Decker reported a strong third quarter with revenue up 6% year-over-year, driven by organic growth in Tools & Storage. The company achieved record operating margins and earnings per share through cost control and margin resiliency initiatives. Free cash flow also showed significant improvement.

Revenues totaled $3.9 billion, up 6% versus prior year, led by 11% organic growth in Tools & Storage.

Operating margin rate was a record 17.7%, up 320 basis points versus prior year, aided by cost control, margin resiliency initiatives, volume leverage, and price realization.

Diluted EPS was a record $2.89, up 36% versus 3Q'19, excluding charges.

Free cash flow in the quarter was $615 million.

Total Revenue
$3.85B
Previous year: $3.63B
+6.0%
EPS
$2.89
Previous year: $2.13
+35.7%
Working Capital Turns
7
Previous year: 5.9
+18.6%
Gross Profit
$1.38B
Previous year: $1.24B
+11.0%
Cash and Equivalents
$683M
Previous year: $312M
+119.1%
Free Cash Flow
$615M
Previous year: $96M
+540.6%
Total Assets
$23B
Previous year: $21.3B
+8.1%

Stanley Black & Decker

Stanley Black & Decker

Stanley Black & Decker Revenue by Segment

Forward Guidance

The company expects continued strong operating results in Q4 2020 and will share its scenario planning framework on today’s earnings call.

Revenue & Expenses

Visualization of income flow from segment revenue to net income