Q3 2023 Earnings Summary
Reported on Oct 27, 2023 (Before Market Open)
Pre-Earnings Price$77.23Last close (Oct 26, 2023)
Post-Earnings Price$82.11Open (Oct 27, 2023)
Price Change
$4.88(+6.32%)
- Stanley Black & Decker is achieving significant gross margin improvements ahead of expectations, driven by their supply chain transformation and cost savings initiatives, leading to increased EPS guidance. ,
- The company expects continued gross margin expansion into 2024, targeting a full-year gross margin around 30%, indicating strong profitability growth and operational efficiency. ,
- Strategic investments in innovation and a focus on professional end users and core brands like DEWALT are positioning the company for future growth and market share gains, aiming to grow 2-3x the market over time. ,
- Stanley Black & Decker expects a softer top line in Q4, approximately $100 million less than previous expectations, due to weakness in outdoor and attachment tools segments and potential headwinds from the UAW strike affecting their fastening business.
- The company’s revenue and margin improvements for next year are heavily dependent on a stable or improving macroeconomic environment, with their $4 to $5 EPS guidance contingent on such conditions; any macro deterioration could put their targets at risk.
- Impairment write-downs on key brands like IRWIN and Troy-Bilt indicate challenges within these brands, and the company acknowledges weak points in outdoor and consumer trends, which could negatively impact future performance.
Research analysts covering STANLEY BLACK & DECKER.