Stanley Black & Decker (NYSE: SWK) reported Q1 EPS of $1.42, $0.31 better than the analyst estimate of $1.11. Revenue for the quarter came in at $3.33 billion versus the consensus estimate of $3.3 billion.

• 1Q'19 Revenues Totaled $3.3 Billion, Up 4% Versus Prior Year, Fueled By 5% Organic Growth And 3% Growth From Acquisitions
• 1Q'19 Diluted GAAP EPS Was $1.13; Excluding Charges, 1Q'19 Diluted EPS Was $1.42, Overcoming $160 Million Or Approximately $0.90 Of EPS In External Headwinds
• EPS Outperformance Driven By Strong Operational Performance And 16 Cents (~50% Of Outperformance) Of Tax Timing Within The Year
• Successfully Completed Acquisition Of IES Attachments
• Raising Full Year Diluted GAAP EPS Guidance Range to $7.50 - $7.70 (From $7.45 - $7.65), Raising Adjusted EPS Guidance Range To $8.50 - $8.70 (From $8.45 - $8.65) And Reiterating Free Cash Flow Conversion Estimate Of Approximately 85% - 90%

"We continue to have a series of strong growth catalysts that position us well to deliver share gains, including the ongoing Craftsman brand rollout, Lenox and Irwin revenue synergies, FlexVolt, e-commerce, emerging markets and new innovations. The organization is also focused on margin expansion as we realize the benefits from our $250 million cost reduction program and recent pricing actions. We are also in the process of defining and implementing a significant multi-year margin expansion initiative which we will dimension and provide details on at our upcoming Investor Day in May.

"Our seasoned management team is focused on leveraging our SFS 2.0 operating system and acting with the agility required to achieve success in 2019 and beyond. We remain committed to advancing progress against our vision to strive to become known as one of the world\'s leading innovators, while continuing to deliver top-quartile financial performance and elevate our commitment to social responsibility."

GUIDANCE:

Stanley Black & Decker sees FY2019 EPS of $8.50-$8.70, versus the consensus of $8.53.

Donald Allan Jr., Executive Vice President and CFO, commented, "We were pleased that Security continued to successfully execute its business transformation in the first quarter, delivering operating margin rate and dollar expansion through cost control and an intense focus on minimizing recurring revenue attrition. At the same time, focused investments in commercial resources and new customer solutions in electronic security are expected to positively impact organic growth as the year progresses.

"Stanley Black & Decker's updated outlook for 2019 includes above-market organic growth of 4%, adjusted earnings per share growth of 4% - 7% versus prior year and strong free cash flow generation, all while offsetting $340 million in external headwinds, mostly from 2018 carryover. Our solid start to the year reflects that we are successfully leveraging our continued strong organic growth, pricing actions and the $250 million cost reduction program. These factors along with the beginning impacts of certain margin enhancement initiatives will result in operating margin and rate expansion in 2019.

"The organization remains focused on strong day-to-day execution and operational excellence in accordance with our SFS 2.0 operating system. We are confident that we have positioned the Company to deliver sustained above-market organic growth with operating leverage, strong free cash flow conversion and top-quartile shareholder returns over the long-term."

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