Stanley Black & Decker Q4 2022 Earnings Report
Key Takeaways
Stanley Black & Decker's fourth-quarter revenues were $4.0 billion, in line with the prior year. The company reported a GAAP EPS loss of ($0.72) and an adjusted EPS loss of ($0.10). They generated $520 million in free cash flow and reduced inventory by $500 million during the quarter. The company is guiding for a full-year 2023 GAAP EPS of ($1.65) to $0.85.
Fourth-quarter revenues were $4.0 billion, matching the previous year's performance.
The company's diluted GAAP EPS was ($0.72), while the adjusted diluted EPS was ($0.10).
Free cash flow for the fourth quarter reached $520 million, contributing to a $0.5 billion debt reduction.
The company is focused on streamlining the organization and prioritizing cash flow generation.
Stanley Black & Decker
Stanley Black & Decker
Stanley Black & Decker Revenue by Segment
Forward Guidance
Management expects 2023 EPS to be in the range of ($1.65) to $0.85 on a GAAP basis, and between $0.00 to $2.00 on an adjusted basis. Free cash flow is expected to approximate $0.5 billion to $1.0 billion.
Positive Outlook
- Prioritizing free cash flow generation
- Focusing on serving its customers
- Leveraging the SBD Operating Model to drive working capital efficiency
- Positioning the Company for gross margin expansion
- Enhanced balance sheet strength
Challenges Ahead
- Wider range of 2023 demand possibilities
- Destocking scenarios
- EPS loss expected in the front half
- Impact of targeted production curtailments will continue to weigh on margins through the first half of 2023
- Integration-related charges and other charges primarily due to supply chain transformation under the Global Cost Reduction Program