LONDON, UK / ACCESSWIRE / January 29, 2018 / Active-Investors.com has just released a free earnings report on Stanley Black & Decker, Inc. (NYSE: SWK). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=SWK. Stanley Black & Decker reported its fourth quarter and fiscal 2017 operating and financial results on January 24, 2018. The tool Company outperformed top- and bottom-line expectations and provided guidance for the fiscal year 2018.Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
Stanley Black & Decker's Q4 2017 revenues totaled $3.41 billion, up 17% compared to revenues of $2.92 billion in Q4 2016, including robust organic growth of 8%. The Company's revenue numbers topped analysts' estimates of $3.28 billion.
Stanley Black & Decker's full year 2017 revenues totaled $12.75 billion, up 12% compared to revenues of $11.41 billion in FY16, as organic growth and growth from acquisitions were partially offset by the sale of the mechanical security business.
For Q4 2017, Stanley Black & Decker's gross margin rate was 36.6%. Excluding charges, the Company's gross margin rate for the reported quarter was 36.7% compared to 36.9% in the year ago same period as volume leverage and productivity were more than offset by the impact from the Mechanical Security business divesture and continued commodity inflation.
Stanley Black & Decker's operating margin rate was 13.3% in the reported quarter. Excluding charges, the Company's operating margin rate came in at 13.8% for Q4 2017, reflecting a 30-basis point expansion versus Q4 2016.
Stanley Black & Decker's net earnings were $281.5 million, or $1.84 per diluted share, in Q4 2017 compared to earnings of $255.5 million, or $1.71 per diluted share, in Q4 2016. Excluding M&A related charges, the Company's reported quarter earnings was 2.18, up 27% on a y-o-y basis, ahead of Wall Street's estimates of $2.15 per share.
Stanley Black & Decker's earnings came in at $1.23 billion, or $8.04 per diluted share, in FY17 compared to $965.3 million, or $6.51 per diluted share, in FY16. Excluding M&A related charges, the Company's earnings were $7.45 per share in FY17, up 14% on a y-o-y basis, reflecting strong operational performance and accretive acquisitions.
Stanley Black & Decker's Segment Results
During Q4 2017, the Tools & Storage segment net sales surged 26% to $2.43 billion on a y-o-y basis. The segment's organic growth was strong across all regions with emerging markets and Europe up 17%, while North America gained 8%. The strong emerging market organic growth was supported by mid-price-point product releases, higher ecommerce volumes, and benefits from changes to the Company's distribution models in Russia & Turkey. Overall Tools & Storage segment profit rate, excluding charges, was 16.7% in the reported quarter, up 50 basis points compared to the year ago same period, as volume leverage and productivity more than offset growth investments, price, and increased commodity inflation.
For Q4 2017, the Industrial segment's net sales grew 4% to $473 million on a y-o-y basis. The segment's Engineered Fastening organic revenues increased 1% as automotive fastener penetration gains, and strong volume growth in general industrial markets more than offset the impact from lower self-piercing rivet system shipments in automotive and lower volumes within electronics. Overall Industrial segment's profit rate was 16.0% in the reported quarter, as volume leverage, productivity gains and cost control resulted in an 80-basis point expansion versus Q4 2016.
For Q4 2017, the Security unit's net sales fell 4% to $510 million on a y-o-y basis as gains from bolt-on commercial electronic security acquisitions, currency, and volume were more than offset by the sale of the Mechanical Security business. Overall Security segment's profit rate came in at 11.1% in the reported quarter, consistent with the prior two quarters, while it rate reflected a decline of approximately 90 basis points compare to the year ago period, related to the sale of the Mechanical Security business, as well as impacts from mix and funding growth investments.
Outlook
For 2018, Stanley Black & Decker is forecasting to generate above-market organic growth of approximately 5% and adjusted earnings per share growth of 11% to 14% versus prior year. Management expects its 2018 EPS to be in the range of $7.80 to $8.00 on a GAAP basis and $8.30 to $8.50 on an adjusted basis. The Company's free cash flow conversion is expected to approximate 100%.
Stock Performance Snapshot
January 26, 2018 - At Friday's closing bell, Stanley Black & Decker's stock marginally climbed 0.33%, ending the trading session at $169.72.
Volume traded for the day: 1.75 million shares, which was above the 3-month average volume of 904.13 thousand shares.
Stock performance in the last month - up 1.14%; previous three-month period - up 3.79%; past twelve-month period - up 36.76%; and year-to-date - up 0.02%
After last Friday's close, Stanley Black & Decker's market cap was at $25.86 billion.
Price to Earnings (P/E) ratio was at 21.43.
The stock has a dividend yield of 1.48%.
The stock is part of the Industrial Goods sector, categorized under the Machine Tools & Accessories industry. This sector was up 1.0% at the end of the session.
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