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Sep 30, 2024
Stanley Black & Decker Q3 2024 Earnings Report
Stanley Black & Decker's Q3 2024 financial performance reflected gross margin improvements driven by supply chain transformation and strong cash generation, despite revenue decline due to mixed end market demand.
Key Takeaways
Stanley Black & Decker reported Q3 2024 results with revenues of $3.8 billion, a 5% decrease year-over-year. Gross margin increased to 29.9%, up 310 basis points from the prior year. GAAP EPS was $0.60, and adjusted EPS was $1.22. The company generated $286 million in cash from operating activities and approximately $200 million in free cash flow.
Revenues were $3.8 billion, down 5% versus prior year, impacted by infrastructure divestiture.
Gross margin was 29.9%, up 310 basis points versus prior year.
GAAP EPS was $0.60; adjusted EPS was $1.22.
Cash from operating activities was $286 million, and free cash flow was approximately $200 million.
Stanley Black & Decker
Stanley Black & Decker
Stanley Black & Decker Revenue by Segment
Revenue by Segment
Tools & Outdoor Revenue
CapyFin.com Forward Guidance
Management is narrowing its 2024 EPS guidance ranges with GAAP EPS to be between $1.15 to $1.75 (from $0.90 to $2.00) and adjusted EPS to be between $3.90 to $4.30 (from $3.70 to $4.50). Free cash flow is reiterated at approximately $650 million to $850 million.
Positive Outlook
- Disciplined execution of supply chain transformation.
- Targeting approximately 30% adjusted gross margin for the full year.
- Focused on delivering margin expansion.
- Focused on cash generation.
- Focused on balance sheet strength.
Challenges Ahead
- Difference between 2024 GAAP and adjusted EPS guidance is approximately $2.55 to $2.75.
- Charges related to the supply chain transformation under the Global Cost Reduction Program.
- Environmental reserve adjustments.
- Brand impairment charge.
- Weak consumer and automotive production backdrop impacted organic revenue