Stanley Black & Decker Beats Q3 Earnings and Revenue Estimates

Security net sales decreased 8% versus 3Q’14 as price (+1%) was more than offset by lower volumes (-2%) and currency (-7%).

NEW BRITAIN, Conn. – Stanley Black & Decker (NASDAQ: SWK) on Thursday reported third-quarter profit of $228.7 million.

The company, based here, said it had profit of $1.52 per share. Earnings, adjusted for restructuring costs and to account for discontinued operations, came to $1.55 per share.

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The results exceeded Wall Street expectations. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of $1.44 per share.

The company posted revenue of $2.83 billion in the period, also exceeding Street forecasts. Seven analysts surveyed by Zacks expected $2.81 billion.

Stanley Black & Decker expects full-year earnings to be $5.80 to $5.95 per share.

Stanley Black & Decker shares have increased 2% since the beginning of the year, while the Standard & Poor’s 500 index has decreased almost 2%. The stock has increased 14% in the last 12 months.

The company manufacturers branded tools and engineered solutions for professional, industrial and consumer applications. It also provides integrated access and security solutions to commercial, institutional and residential customers.

Overall, the company said its security segment profit rate was 11.9%, up 150 basis points from the 2Q’15 rate and 30 basis points lower than prior year. The sequential improvement in the rate reflects continued margin expansion within Europe and improved operating performance across the North America businesses.

“Security showed stable organic revenue with impressive strength in Europe, strong order rate trends, and sequential margin improvement – all encouraging signs that this business is on a solid improvement track,” James Loree, president and COO, Stanley Black & Decker, says. “The commercial actions we have taken to drive growth in both North America and Europe are beginning to manifest themselves in order rates and backlog while efforts to improve security’s field efficiency and cost structure continue to progress.”

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