SWK Beats 4Q Est by a Cent - Analyst Blog
24 Janeiro 2013 - 1:21PM
Zacks
Industrial tool maker Stanley Black &
Decker (SWK) reported earnings per share from continuing
operations of $1.37 in the fourth quarter of 2012, up from $1.22
reported in the year-ago quarter and a cent above the Zacks
Consensus Estimate of $1.36.
Earnings per share for 2012 increased 1.3% to $4.67 but fell behind
the Zacks Consensus Estimate of $4.92 per share.
GAAP EPS, including 58 cents and $1.97 of one-time charges, was 79
cents for the fourth quarter and $2.70 for 2012.
Stanley Black & Decker, in Dec 2012, divested its Hardware
& Home Improvement business (HHI), which majorly belonged to
the company’s Security segment; only a part of it was included in
the CDIY segment. Since divested, the results from this business
have been recorded as discontinued operations.
Revenue
Net revenue in the fourth quarter increased 4.0% year over year to
$2,668.5 million. The increase can be attributed to a 3%
contribution from acquisitions and 4% from volume growth. The
impact was partially offset by a 1% negative impact from foreign
currency translation.
Revenue in the CDIY segment (51.4% of fourth quarter 2012 revenue)
increased 8.3% year over year to $1,371.7 million, while the
Security segment (24.2%) reported revenues of $646.5 million,
reflecting a year over year decline of 1.7%. Industrial segment
(24.4%) sales increased 1.5% to $650.3 million.
For 2012, net revenues came in at $10,190.5 million, up 8.0% year
over year.
Margins
In the fourth quarter 2012, normalized cost of sales, as a
percentage of revenue was 64.0% versus 64.3% reported in the
year-ago quarter. Gross margin improved 30 basis points to 36.0%
being benefited from cost synergies and margin improvement
initiatives of the company.
Selling, general and administrative expenses registered a
year-over-year increase of 1.2% and as a percentage of revenue
declined 60 basis points to 22.6%. Operating margin in the quarter
was 13.3% versus 12.5% in the year-ago comparable quarter.
Balance Sheet
Exiting the fourth quarter, Stanley Black & Decker’s cash and
cash equivalents stood at $716.0 million, down roughly 7.0% from
$769.5 million in the previous quarter. Long-term debt (net of
current portions) rose 29.2% sequentially to $3,526.5 million.
Cash Flow
Normalized net cash flow from operating activities was $692.4
million in the fourth quarter, up 14% year over year. Capital
spending increased a whopping 78.6% to $96.1 million. Higher cash
flow and increased capital spending resulted in a 7.7% increase in
free cash flow that settled at $596.3 million.
The company expended approximately $82.7 million in paying
dividends to shareholders in the fourth quarter.
For 2012, cash flow from operating activities settled at $1,322.7
million while capital spending approximated $263.6 million,
resulting in free cash flow of $1,059.1 million.
Outlook
For 2013, management anticipates earnings per share, excluding
one-time charges, to be within the $5.40-$5.65 range. Organic net
sales are expected to grow 2%-3% from the 2012 level.
Cost synergies of approximately $85 million, including the final
amount of $50 million from the Black & Decker and $35 million
from the Niscayah acquisitions are expected to be realized in
2013.
GAAP EPS for the year is expected to be in the range of $4.62-$4.87
for 2013. Free cash flow is projected to be roughly $1.0
billion.
Stanley Black & Decker manufactures tools and engineered
security solutions across the globe. The stock currently carries a
Zacks Rank #4 (Sell). Other companies to watch out for earnings are
Lincoln Electric Holdings Inc. (LECO)—expected to
report on Feb 11, 2013; Danaher Corp.
(DHR)—expected to report on Jan 29, 2013; and Hardinge
Inc. (HDNG)—expected to release on Feb 11, 2013.
DANAHER CORP (DHR): Free Stock Analysis Report
HARDINGE INC (HDNG): Free Stock Analysis Report
LINCOLN ELECTRC (LECO): Free Stock Analysis Report
STANLEY B&D INC (SWK): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Hardinge Inc. (delisted) (NASDAQ:HDNG)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Hardinge Inc. (delisted) (NASDAQ:HDNG)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024
Notícias em tempo-real sobre Hardinge Inc. (delisted) da NASDAQ bolsa de valores: 0 artigos recentes
Mais Notícias de Hardinge, Inc. (MM)