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Sep 30, 2021
Stanley Black & Decker Q3 2021 Earnings Report
Reported record third quarter revenue driven by robust customer demand across all segments, resulting in double-digit organic revenue growth.
Key Takeaways
Stanley Black & Decker reported record third quarter revenues of $4.3 billion, up 11% versus prior year, with all segments contributing to 10% organic growth. Diluted GAAP EPS was $2.56, and excluding charges, diluted EPS was $2.77. The company is revising its 2021 diluted GAAP EPS guidance range to $10.20 - $10.45 and adjusted EPS to $10.90 - $11.10.
Record third quarter revenues of $4.3 billion, up 11% versus prior year, driven by robust customer demand across all segments.
Organic growth was 10%, with strong tools demand leading the way.
3Q'21 Operating Margin was 11.6%; Excluding charges 3Q'21 Operating Margin was 12.2%, down versus prior year reflecting higher supply chain costs that accelerated in the quarter
Revised 2021 diluted GAAP EPS guidance range to $10.20 - $10.45 and adjusted EPS to $10.90 - $11.10.
Revenue by Segment
Forward Guidance
The Company is updating its 2021 EPS outlook to $10.20 - $10.45 from $10.80 - $11.20 on a GAAP basis, and to $10.90 - $11.10 from $11.35 - $11.65 on an adjusted basis. Free cash flow is expected to approximate $1.1 - $1.3 billion.
Positive Outlook
- Organic revenue growth of 16% - 17%.
- Adjusted EPS expansion of 22% versus prior year and 31% versus 2019.
- New round of price increases and surcharges to address the cost inflation.
- Maintaining investment levels to support growth catalysts.
- Expanding the supply chain to deliver significant revenue growth in 2022 and beyond.
Challenges Ahead
- Incremental $230 million in commodity, transit and labor inflation.
- Impact from currency.
- Lower tax rate and other below the line assumptions.
- Margin resiliency, incremental pricing actions and other cost control activity.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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