Stanley Black & Decker stock bounces off 5-month low after big earnings beat, raised outlook

Shares of Stanley Black & Decker Inc. (SWK) jumped 2.1% in premarket trading Friday to bounce off a five-month low, after the tools maker reported third-quarter profit that was well above expectations and raised the full-year outlook, as cost cutting provided a boost. Net income dropped to $4.7 million, or 3 cents a share, from $844.6 million, or $5.50 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $1.05 beat the FactSet consensus of 83 cents. Revenue fell 4% to $3.95 billion, just below the FactSet consensus of $3.99 billion, as sales for the company's tools and outdoor and industrial businesses both fell 4%. For 2023, the company raised its guidance range for adjusted EPS to $1.10 to $1.40 from 70 cents to $1.30. "We are creating strong momentum with our cost reduction program, delivering $880 million in inventory reduction and $675 million of pre-tax run-rate cost savings year-to-date, both ahead of our initial plans," said Chief Financial Officer Patrick Hallinan. The stock has dropped 21.5% over the past three months through Thursday while the S&P 500 has shed 8.8%.

-Tomi Kilgore

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

10-27-23 0612ET

Copyright (c) 2023 Dow Jones & Company, Inc.