NYSE$SWK

Stanley Black & Decker Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported a decrease in revenue due to lower consumer & DIY volume, currency impacts, and strategic divestiture. EPS and adjusted EPS were negative, reflecting prioritization of inventory reduction and cash generation. The company is focused on transformation plan, reducing inventory, and optimizing the global supply chain.

Stanley Black & Decker reported a decrease in first-quarter revenue to $3.9 billion, primarily due to lower consumer and DIY volume, currency impacts, and strategic divestitures. Diluted GAAP EPS was negative, but the company is making progress on cost reduction and inventory optimization.

  • First Quarter Revenues of $3.9 Billion, Down Versus Prior Year
  • First Quarter Diluted GAAP EPS Was ($1.26)
  • Global Cost Reduction Program Delivered $230 Million of Pre-Tax Run-Rate Savings
  • Inventory reduced by approximately $200 million from the prior quarter

Headline financials

Total Revenue

$3.93B

Previous: $4.45B-11.6%
EPS (adj)

-$0.41

Previous: $2.10-119.5%
Gross Margin

21.2%

No prior period
Adjusted Gross Margin

23.1%

No prior period
Capital Expenditures

-$68.2M

Previous: -$140M+51.2%
Free Cash Flow

-$256M

Previous: $35.5M-821.1%
Net Income

-$188M

Previous: $175M-207.1%
Operating Income

$86.1M

Previous: $241M-64.2%
Gross Profit

$836M

Previous: $1.31B-36.0%
Cash & Equivalents

$388M

Previous: $166M+133.8%
Total Assets

$25.1B

Previous: $29.4B-14.6%
Stock-Based Comp

$34.7M

Previous: $118M-70.7%

Revenue & EPS history

Stanley Black & Decker · Revenue · Quarterly

$3.93B

Q1 2023-11.6%vs Q1 2022
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

Stanley Black & Decker · $3.32B total across 1 segment · Q1 2023

  • Tools & Outdoor
    $3.32B

Forward guidance

Management expects 2023 EPS guidance to be in the range of ($1.65) to $0.60 on a GAAP basis. Adjusted EPS is expected to be between $0.00 to $2.00. Free cash flow expectations remain unchanged at approximately $0.5 billion to $1.0 billion.

Tailwinds

  • Prioritizing cash generation
  • Gross margin improvement
  • Balance sheet strength
  • Executing business transformation initiatives to deliver cost savings

Headwinds

  • Range of possible demand
  • Destocking scenarios in 2023
  • Integration-related charges
  • Supply chain transformation charges

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 2023

Historical avgQ1 2023

-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