NYSE$SWK

Stanley Black & Decker Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported record first quarter 2021 results driven by strong organic growth, margin expansion, and record adjusted EPS.

Stanley Black & Decker reported a strong first quarter in 2021, with revenue reaching $4.2 billion, a 34% increase compared to the prior year. The company's diluted GAAP EPS was $2.98, and excluding charges, the diluted EPS was $3.13, up 161% versus prior year. As a result of this strong performance, the company is raising its 2021 diluted GAAP EPS guidance range to $10.15 - $10.55.

  • Revenues totaled $4.2 billion, up 34% versus prior year, led by Tools & Storage with all segments contributing to 31% organic growth.
  • Gross margin was 37.3%; excluding charges, gross margin was 37.4%, up 440 basis points versus prior year.
  • Operating margin was 16.9%; excluding charges, operating margin was 17.6%, up 760 basis points versus prior year, driven by volume, price, cost control, and margin resiliency.
  • Diluted GAAP EPS was $2.98; excluding charges, diluted EPS was $3.13, up 161% versus prior year.

Headline financials

Total Revenue

$4.2B

Previous: $3.13B+34.1%
EPS (adj)

$3.13

Previous: $1.20+160.8%
Gross Margin

37.3%

No prior period
Tax Rate

19.8%

No prior period
Capital Expenditures

-$88.3M

Previous: -$82.9M-6.5%
Free Cash Flow

$399M

Previous: $50.3M+693.4%
Net Income

$487M

Previous: $133M+265.9%
Operating Income

$673M

Previous: $324M+108.2%
Gross Profit

$1.56B

Previous: $1.02B+52.9%
Cash & Equivalents

$949M

Previous: $987M-3.8%
Total Assets

$23.9B

Previous: $22.9B+4.2%

Revenue & EPS history

Stanley Black & Decker · Revenue · Quarterly

$4.2B

Q1 2021+34.1%vs Q1 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Stanley Black & Decker · $3.06B total across 1 segment · Q1 2021

  • Tools & Outdoor
    $3.06B+47.9%

Forward guidance

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.

Tailwinds

  • Stronger organic growth
  • Incremental pricing
  • Margin resiliency actions
  • Improved demand outlook across most of our businesses
  • 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.

Headwinds

  • Increased commodity inflation
  • Second half which could be much stronger than our current guidance
  • Potential adverse developments in new or pending litigation and/or government investigations
  • Potential regulatory liabilities, including environmental, privacy, data breach, workers compensation and product liabilities
  • The continued adverse effects of the COVID-19 pandemic and an indeterminate recovery period

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-1.1%

Avg return

Earnings day

-1.8%

Avg return

5 days after

-0.9%

Avg return

30 days after

42%

27 / 65 earnings

Positive

+10.7%

Q2 2012

Best reaction

-17.1%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.6%-4.4%+1.5%
Q4 2025+4.5%+11.0%-6.0%
Q3 2025+0.4%+2.9%+8.8%
Q1 2025-2.0%-1.9%+6.8%
Q4 2024-1.2%-1.0%+2.7%
Q3 2024-8.8%-9.3%-12.8%
Q2 2024+9.5%+2.3%+5.7%
Q1 2024-6.6%-5.0%-5.1%
Q4 2023-2.9%-4.2%-4.0%
Q3 2023+9.1%+10.0%+18.4%
Q2 2023+2.0%-0.8%-4.9%
Q1 2023-1.2%-5.6%-6.7%
Q4 2022+2.9%-0.8%-4.3%
Q3 2022-1.0%-3.4%+4.8%
Q2 2022-17.1%-19.9%-23.3%
Q1 2022-13.6%-9.3%-14.0%
Q4 2021-0.2%-1.2%-8.5%
Q3 2021-3.5%-1.9%-1.9%
Q2 2021-5.1%-4.3%-6.2%
Q1 2021+0.8%+1.3%+4.3%
Q4 2020+0.1%+2.2%+0.9%
Q3 2020-6.0%-3.9%+7.8%
Q2 2020-1.8%-0.9%+6.0%
Q1 2020-12.8%-12.3%+2.8%
Q4 2019-0.7%-3.3%-13.6%
Q3 2019-1.5%+0.3%+2.4%
Q2 2019+7.8%+7.7%-2.0%
Q1 2019-2.7%-0.1%-9.9%
Q4 2018-13.4%-11.9%+0.5%
Q3 2018-2.5%+0.1%+11.4%
Q2 2018-0.7%+0.5%+1.2%
Q1 2018-7.8%-7.3%-6.3%
Q4 2017-2.7%-3.1%-7.4%
Q3 2017+3.4%+4.1%+4.9%
Q2 2017-3.1%-4.7%-6.6%
Q1 2017+3.5%+2.7%+2.9%
Q4 2016+0.6%-0.2%+2.8%
Q3 2016-2.0%-2.7%+4.1%
Q2 2016+5.7%+6.4%+6.2%
Q1 2016+3.2%
Q4 2015-1.9%
Q3 2015+8.0%
Q2 2015-2.5%
Q1 2015+1.7%
Q4 2014+3.5%
Q3 2014+3.4%
Q2 2014+6.6%
Q1 2014+3.4%
Q4 2013-3.8%
Q3 2013-16.9%
Q2 2013+1.9%
Q1 2013-4.7%
Q4 2012-1.4%
Q3 2012-2.9%
Q2 2012+10.7%
Q1 2012-7.7%
Q4 2011+0.8%
Q3 2011+1.3%
Q2 2011-4.3%
Q4 2009-1.1%
Q1 2011+1.8%
Q3 2010-0.6%
Q2 2010+3.2%
Q4 2010+3.2%
Q1 2010-3.6%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro