NYSE$SWK
Stanley Black & Decker Inc · Q2 2022 earnings
Q2 2022 earnings · · Investor relations
Briefing
Reported a revenue increase driven by acquisitions and price realization, but faced challenges due to macroeconomic factors and slower demand.
Stanley Black & Decker reported second-quarter revenues of $4.4 billion, a 16% increase compared to the prior year, driven by acquisitions in outdoor power equipment and price realization. The company is implementing a global cost reduction program expected to deliver pre-tax savings of $1 billion by the end of 2023 and grow to approximately $2 billion within 3 years. The company updated its full-year 2022 diluted GAAP EPS guidance range to $0.80 - $2.05 and adjusted diluted EPS to $5.00 - $6.00.
- Second quarter revenues were $4.4 billion, up 16% versus prior year, led by acquisitions in outdoor power equipment and price realization.
- Second quarter diluted GAAP EPS was $0.51; excluding charges, adjusted diluted EPS was $1.77.
- Stanley Security and Access Technologies divestitures both closed in July 2022, with total cash proceeds of $4.1 billion, reducing debt balances in the third quarter.
- The company is updating full year 2022 diluted GAAP EPS guidance range to $0.80 - $2.05 (from $7.20 - $8.30); adjusted diluted EPS to $5.00 - $6.00 (from $9.50 - $10.50).
Headline financials
Revenue & EPS history
Stanley Black & Decker · Revenue · Quarterly
$4.39B
Revenue by segment
Stanley Black & Decker · $3.75B total across 1 segment · Q2 2022
- Tools & Outdoor$3.75B+17.1%100.0%
Forward guidance
Stanley Black & Decker is revising its 2022 EPS outlook to $0.80 to $2.05 on a diluted GAAP basis from $7.20 to $8.30, and on a Non-GAAP adjusted basis to $5.00 to $6.00 from $9.50 to $10.50. Free cash flow is expected to be $0.4 to $1.0 billion in the back half including tax payments of $0.5 to $0.6 billion associated with Security divestitures. Excluding such payments, cash generation is expected to be $1.0 to $1.5 billion driven by working capital reductions.
Tailwinds
- The company is focused on serving its customers by improving power tool supply while reducing inventory in other categories.
- Stanley Black & Decker remains focused on disciplined capital allocation, and intends to balance share repurchase activity with its commitment to dividends and strong investment grade credit ratings.
- 2022 Impact from cost savings initiatives (+$0.80 - $1.00)
Headwinds
- Lower second half revenue, primarily driven by slowing consumer demand in Tools & Outdoor and moderated expectations for price (-$4.25)
- Currency translation, other below the line items and second quarter performance (-$0.55)
- Impact from plant production curtailments (-$0.50 - $0.70)
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 Q2 2022
-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
| Quarter | Report date | Reaction (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% | — | — |
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