Stanley Black & Decker, Inc (SWK) Tops Q3 EPS by 11c

Stanley Black & Decker, Inc (NYSE: SWK) reported Q3 EPS of $1.55, $0.11 better than the analyst estimate of $1.44. Revenue for the quarter came in at $2.9 billion versus the consensus estimate of $2.87 billion.

3Q’14 Key Points:

• Net sales for the period were $2.9 billion, up 5% versus the prior year, primarily attributable to volume (+5%) and price (+1%), partially offset by currency (-1%).
• The gross margin rate for the quarter was 36.2%. Excluding charges the gross margin rate was also 36.2%, up 20 basis points from the prior year rate of 36.0%, as favorable volume, price, productivity and cost actions more than offset unfavorable currency and lower Security margins.
• SG&A expenses were 22.4% of sales. Excluding charges, SG&A expenses were 22.1% of sales, compared to 23.1% in 3Q’13.
• Operating margin rate was 13.8%. Excluding charges, operating margin rate was 14.1%, up 120 basis points from 3Q’13, as actions taken to improve profitability and generate operating leverage more than offset slightly higher than expected unfavorable currency.
• The tax rate was 19.1%. Excluding charges, the tax rate was 18.8% due to a larger portion of earnings in lower taxed jurisdictions and changes in required foreign tax reserves due to statute expirations.
• Working capital turns for the quarter were 6.4, up 0.5 turns from 3Q’13. Free cash flow for the quarter was $189 million, a $178 million increase over 3Q’13.

For earnings history and earnings-related data on Stanley Black & Decker, Inc (SWK) click here.

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