Stanley Black & Decker (NYSE: SWK) reported Q1 EPS of $3.13, $0.57 better than the analyst estimate of $2.56. Revenue for the quarter came in at $4.2 billion versus the consensus estimate of $3.96 billion.

First quarter 2021 financial results.

• 1Q'21 Revenues Totaled $4.2 Billion, Up 34% Versus Prior Year Led By Tools & Storage With All Segments Contributing To 31% Organic Growth
• 1Q'21 Gross Margin Was 37.3%; Excluding Charges, 1Q'21 Gross Margin Was 37.4% Up 440 Basis Points Versus Prior Year
• 1Q'21 Operating Margin Was 16.9%; Excluding Charges 1Q'21 Operating Margin Was 17.6%, Up 760 Basis Points Versus Prior Year Driven By Volume, Price, Cost Control And Margin Resiliency
• 1Q'21 Diluted GAAP EPS Was $2.98; Excluding Charges, 1Q'21 Diluted EPS Was $3.13, Up 161% Versus Prior Year
• Raising 2021 Diluted GAAP EPS Guidance Range To $10.15 - $10.55 (From $9.15 - $9.85); Raising Adjusted EPS To $10.70 - $11.00 (From $9.70 - $10.30); Reiterating Free Cash Flow To Approximate Net Income
• Board Of Directors Increases Share Repurchase Authorization To 20 Million Shares

Stanley Black & Decker's CEO, James M. Loree, commented, "Our record-setting growth and strong margins continued in the first quarter, building on the momentum from the second half of last year. We generated 31% organic growth leveraging our robust portfolio of innovations coupled with positive secular trends and vibrant markets, significant gross and operating margin expansion supported by our cost actions and margin resiliency program, and record adjusted EPS. Our exceptionally strong start to 2021 has led us to improve our revenue and EPS outlook for the year. Our team continues to do a phenomenal job remaining agile in this dynamic market, working to serve our valued customers across the globe.

"As we look to the future, our portfolio is uniquely positioned to benefit from key trends, several of which have been accelerated and amplified by the pandemic: the consumer reconnection with the home and garden, eCommerce, electrification and health and safety. We are capitalizing on this opportunity by funding innovation, commercial and capacity investments to support continued organic growth and share gains. Additionally, our option to acquire the remaining stake in MTD in July has the potential to create an exciting multi-year runway for growth and significant EPS and cash flow accretion.

"We have a proven formula for performance, becoming known as one of the world's most innovative companies and elevating our commitment to social responsibility (ESG). This vision for winning in the 2020s, coupled with the SBD Operating Model, underlies our plan for sustainable growth, margin expansion and meaningful benefits for all stakeholders."

GUIDANCE:

Stanley Black & Decker sees FY2021 EPS of $10.70-$11.00, versus the consensus of $10.34.

Management is raising and narrowing its 2021 EPS outlook to $10.15 - $10.55 from $9.15 To $9.85 on a GAAP basis, and to $10.70 - $11.00 from $9.70 - $10.30 on an adjusted basis. The Company is also reiterating free cash flow to approximate net income. The primary factors for the increased EPS guidance include stronger organic growth, incremental pricing and margin resiliency actions, which are expected to be partially offset by increased commodity inflation. Management will discuss its 2021 planning assumptions in more detail on today's earnings call.

Donald Allan Jr., President and CFO, commented, "We have raised guidance to reflect the exceptional start to the year and improved demand outlook across most of our businesses. The organization is focused on day-to-day execution and operational excellence in accordance with the SBD Operating Model. This includes both making investments to advance our portfolio of growth catalysts and driving our margin resiliency program and pricing initiatives to support sustainable margin improvement in the face of increasing commodity inflation.

"This revised 2021 guidance will result in organic revenue growth ranging from 11-13% and adjusted EPS growth of approximately 20% at the midpoint. We continue to prepare the Company's operations for a second half which could be much stronger than our current guidance, so we are prepared to maximize our performance if market conditions continue to be very strong into the second half.

"Finally, we are confident that we have positioned the Company to deliver above-market organic growth with operating leverage, strong free cash flow generation and top-quartile shareholder returns over the long-term."

The difference between 2021 GAAP and adjusted EPS guidance is $0.45 - $0.55, consisting of acquisition-related and other charges. These forecasted charges primarily relate to facility moves, deal and integration costs and functional transformation initiatives.

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