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Dec 31, 2020

Stanley Black & Decker Q4 2020 Earnings Report

Stanley Black & Decker reported Q4 2020 earnings with revenue up 19% and EPS up 51% versus prior year.

Key Takeaways

Stanley Black & Decker reported strong Q4 2020 results with a 19% increase in revenue and a 51% increase in diluted EPS, driven by organic growth and margin expansion.

Revenues totaled $4.4 billion, up 19% versus prior year, including 16% organic growth.

Gross margin rate was 35.3%, or 35.6% excluding charges, up 390 basis points versus prior year.

Operating margin rate was 15.6%, or a record 16.5% excluding charges, up 290 basis points versus prior year.

Diluted GAAP EPS was $2.88, or $3.29 excluding charges, up 51% versus prior year.

Total Revenue
$4.41B
Previous year: $3.71B
+18.7%
EPS
$3.29
Previous year: $2.18
+50.9%
Working Capital Turns
10.4
Previous year: 9.8
+6.1%
Gross Profit
$0
Previous year: $1.16B
-100.0%

Stanley Black & Decker

Stanley Black & Decker

Stanley Black & Decker Revenue by Segment

Forward Guidance

The company expects 2021 EPS to be $9.15 to $9.85 on a GAAP basis and $9.70 - $10.30 on an adjusted basis. Free cash flow conversion is expected to approximate GAAP Net Income.

Positive Outlook

  • Leverage portfolio of growth catalysts to gain share as markets continue to improve
  • Focus on leveraging cost actions to deliver margin expansion.
  • Margin resiliency program remains in place to protect against unforeseen changes in the external environment or to support additional margin improvement or growth investments going forward.
  • Well positioned to deliver sustained above-market organic growth
  • Strong free cash flow generation and top-quartile shareholder returns over the long-term.