Stanley Black & Decker (SWK) Reports Strong Q2, Propelled By Merger Synergies
Stanley Black & Decker (NYSE: SWK) announced Wednesday before the market open that its profit in the second quarter dipped as the company took on a number of charges related to the buyout of Black & Decker.
The tool manufacturer reported second-quarter earnings of $45.8 million or 28 cents per share, down from $69.5 million or 87 cents per share in the same quarter last year.
Excluding the one-time items related to when Stanley Works acquired Black & Decker, the company earned $206.1 million or $1.24 per share, easily beating the market estimate of 78 cents per share.
Revenue for the company rose 157 percent in the three month period ended in June to $2.37 billion, ahead of the analyst consensus of $2.25 billion.
“We are in the early stages of developing plans to capture revenue synergies and are excited about the opportunities we have identified thus far," Stanley Black & Decker's President and CEO, John F. Lundgren commented. "Although the strength and speed of economic recovery in the developed nations remains unclear, the strategic actions we have taken in recent years, combined with robust new product and acquisition pipelines, have positioned us for exceptional sales and earnings growth both today and for several years to come."
Looking forward, the company sees earnings in the range of $3.35 to $3.55 per share, up from its prior outlook of $3.10 to $3.30 per share. The Street is currently looking for $3.29 per share.
Analysts at Janney Montgomery Scott called the results "exceptional", with core revenue up 9% and 14% within the legacy BDK business largely on inventory restocking. The firm said, "Given that this was the first full quarter since the acquisition was consummated, it is encouraging to see the "new" Stanley Black & Decker get off to a good start." The firm reiterated their Buy rating on SWK.
Deutsche Bank's analysts were also impressed calling the results "extremely solid", with upside driven largely by better than expected segment margins.
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http://www.streetinsider.com/premium_content.phpares of Stanley Black & Decker are up 1.9 cents to $53.62 in midday market movement Wednesday.
The tool manufacturer reported second-quarter earnings of $45.8 million or 28 cents per share, down from $69.5 million or 87 cents per share in the same quarter last year.
Excluding the one-time items related to when Stanley Works acquired Black & Decker, the company earned $206.1 million or $1.24 per share, easily beating the market estimate of 78 cents per share.
Revenue for the company rose 157 percent in the three month period ended in June to $2.37 billion, ahead of the analyst consensus of $2.25 billion.
“We are in the early stages of developing plans to capture revenue synergies and are excited about the opportunities we have identified thus far," Stanley Black & Decker's President and CEO, John F. Lundgren commented. "Although the strength and speed of economic recovery in the developed nations remains unclear, the strategic actions we have taken in recent years, combined with robust new product and acquisition pipelines, have positioned us for exceptional sales and earnings growth both today and for several years to come."
Looking forward, the company sees earnings in the range of $3.35 to $3.55 per share, up from its prior outlook of $3.10 to $3.30 per share. The Street is currently looking for $3.29 per share.
Analysts at Janney Montgomery Scott called the results "exceptional", with core revenue up 9% and 14% within the legacy BDK business largely on inventory restocking. The firm said, "Given that this was the first full quarter since the acquisition was consummated, it is encouraging to see the "new" Stanley Black & Decker get off to a good start." The firm reiterated their Buy rating on SWK.
Deutsche Bank's analysts were also impressed calling the results "extremely solid", with upside driven largely by better than expected segment margins.
Market Moving News and Intelligence - Free Sign-Up
http://www.streetinsider.com/premium_content.phpares of Stanley Black & Decker are up 1.9 cents to $53.62 in midday market movement Wednesday.
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