Stanley Black & Decker: Earnings Beat Est. - Analyst Blog
25 Abril 2013 - 10:10AM
Zacks
Industrial tool maker,
Stanley Black & Decker (SWK) reported earnings
per share from continuing operations of $1.03 in the first quarter
of 2013, up from 98 cents reported in the year-ago quarter and
above the Zacks Consensus Estimate of 96 cents.
GAAP earnings per share, including 51 cents of one-time charges,
were 52 cents for the quarter.
Revenue
Stanley Black & Decker reported net revenue of $2,487.2 million
in the first quarter, up 2.5% year over year. The increase can be
attributed to a 4% contribution from acquisitions, offset by
roughly 1% decline each in volume and currency. Price was flat in
the quarter.
Revenue in the CDIY segment (47.9% of first quarter 2013 revenue)
rose 1.7% year over year to $1,192.4 million, while the Security
segment (24.1%) reported revenues of $599.4 million, reflecting a
year over year increase of 1.2%. Industrial segment (28.0%) sales
soared 5.0% to $695.4 million.
Margins
In the first quarter 2013, normalized cost of sales for Stanley
Black & Decker, as a percentage of revenue was 62.8% versus
62.3% reported in the year-ago quarter. Gross margin was down 50
basis points to 37.2%, due primarily to higher cost of sales
incurred in the quarter.
Selling, general and administrative expenses registered a
year-over-year increase of 4.2% and as a percentage of revenue
augmented by 50 basis points to 25.6%. Operating margin in the
quarter was 11.6% versus 12.5% in the year-ago comparable
quarter.
Balance Sheet
Cash and cash equivalents of Stanley Black & Decker exiting the
first quarter 2013 were down 22.1% sequentially from $716.0 million
to $557.5 million. Long-term debt (net of current portions) was
also down 0.9% to $3,494.1 million as compared with $3,526.5
million in the previous quarter.
Cash Flow
Normalized net cash flow from operating activities was ($64.1)
million in the first quarter 2013 for Stanley Black & Decker
versus $29.2 million in the year-ago quarter. Capital spending
jumped 80.5% year over year to $68.4 million. Net cash utilization
together with higher capital spending resulted in a negative free
cash flow of $132.5 million versus a negative $8.7 million in the
year-ago quarter.
Stanley Black & Decker expended approximately $79.1 million in
paying dividends to shareholders in the first quarter 2013.
Outlook
For 2013, management of Stanley Black & Decker reiterated its
guidance provided earlier. Earnings per share, excluding one-time
charges, are expected to be within the $5.40-$5.65 range on the
back of 2%-3% organic net sales growth.
Stanley Black & Decker anticipates realizing cost synergies of
approximately $100 million, including the final amount of $50
million from the Black & Decker and $50 million, up from $35
million expected earlier from the Niscayah acquisitions, in
2013.
GAAP EPS for 2013 is expected to be in the range of $4.46-$4.71
versus $4.62-$4.87 predicted earlier. 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 #3 (Hold).
Other companies to watch out for are Lincoln Electric
Holdings Inc. (LECO)—reported adjusted earnings of 92
cents per share, up 21% from 76 cents earned in the year-earlier
quarter and way ahead of the Zacks Consensus Estimate of 78 cents;
Actuant Corporation (ATU)—expected to report on
Jun 19, 2013; and Hardinge Inc. (HDNG)—expected to
release on May 6, 2013.
ACTUANT CORP (ATU): 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
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