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Sep 30, 2022

Stanley Black & Decker Q3 2022 Earnings Report

Reported third quarter 2022 results, with revenue up 9% versus prior year, led by acquisitions in outdoor power equipment, strong industrial growth and price realization.

Key Takeaways

Stanley Black & Decker announced third quarter 2022 financial results, with revenues of $4.1 billion, up 9% versus prior year. Diluted GAAP EPS was $0.24, and adjusted diluted EPS was $0.76. The company is updating its full year 2022 diluted GAAP EPS guidance range to $0.10 to $0.80 and adjusted diluted EPS to $4.15 to $4.65.

Revenues of $4.1 billion, up 9% versus prior year, led by acquisitions in outdoor power equipment, industrial growth and price realization.

Diluted GAAP EPS was $0.24; excluding charges, adjusted diluted EPS was $0.76.

Successfully Completed the Electronic Security, Access Technologies and Oil & Gas Divestitures.

Global Cost Reduction Program On-Track For Long-Term Targets and Delivers $65 Million Pre-Tax Savings in the Third Quarter with a $290 Million Inventory Reduction.

Total Revenue
$4.12B
Previous year: $4.26B
-3.4%
EPS
$0.76
Previous year: $2.77
-72.6%
Gross Profit
$1.01B
Previous year: $1.4B
-27.8%
Cash and Equivalents
$409M
Free Cash Flow
-$540M
Total Assets
$25.5B

Stanley Black & Decker

Stanley Black & Decker

Stanley Black & Decker Revenue by Segment

Forward Guidance

The Company is revising its 2022 EPS outlook to $0.10 to $0.80 on a diluted GAAP basis from $0.80 to $2.05, and on a Non-GAAP adjusted basis to $4.15 to $4.65 from $5.00 to $6.00. Free cash flow is expected to be $0.3 to $0.6 billion in the fourth quarter.

Positive Outlook

  • Disciplined capital allocation
  • Commitment to dividends
  • Debt reduction
  • Strong investment grade credit ratings

Challenges Ahead

  • Lower fourth quarter revenue, primarily driven by Europe
  • Currency translation
  • Higher production curtailment and destocking costs
  • Tax impact from lower earnings

Revenue & Expenses

Visualization of income flow from segment revenue to net income