NYSE$SWK

Stanley Black & Decker Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Stanley Black & Decker reported Q4 2020 earnings with revenue up 19% and EPS up 51% versus prior year.

Stanley Black & Decker reported strong Q4 2020 results with a 19% increase in revenue and a 51% increase in diluted EPS, driven by organic growth and margin expansion.

  • Revenues totaled $4.4 billion, up 19% versus prior year, including 16% organic growth.
  • Gross margin rate was 35.3%, or 35.6% excluding charges, up 390 basis points versus prior year.
  • Operating margin rate was 15.6%, or a record 16.5% excluding charges, up 290 basis points versus prior year.
  • Diluted GAAP EPS was $2.88, or $3.29 excluding charges, up 51% versus prior year.

Headline financials

Total Revenue

$4.41B

Previous: $3.71B+18.7%
EPS (adj)

$3.29

Previous: $2.18+50.9%
Tax Rate

12.5%

No prior period
Net Income

$0.00

Previous: $199M-100.0%
Operating Income

$686M

Previous: $437M+57.2%
Gross Profit

$0.00

Previous: $1.16B-100.0%

Revenue & EPS history

Stanley Black & Decker · Revenue · Quarterly

$4.41B

Q4 2020+18.7%vs Q4 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Stanley Black & Decker · $3.26B total across 1 segment · Q4 2020

  • Tools & Outdoor
    $3.26B+24.8%

Forward guidance

The company expects 2021 EPS to be $9.15 to $9.85 on a GAAP basis and $9.70 - $10.30 on an adjusted basis. Free cash flow conversion is expected to approximate GAAP Net Income.

Tailwinds

  • Leverage portfolio of growth catalysts to gain share as markets continue to improve
  • Focus on leveraging cost actions to deliver margin expansion.
  • Margin resiliency program remains in place to protect against unforeseen changes in the external environment or to support additional margin improvement or growth investments going forward.
  • Well positioned to deliver sustained above-market organic growth
  • Strong free cash flow generation and top-quartile shareholder returns over the long-term.

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 Q4 2020

Historical avgQ4 2020

-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%

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