NYSE$SWK

Stanley Black & Decker Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Stanley Black & Decker reported fourth quarter and full year 2022 financial results, with revenues of $4.0 billion for the quarter and $16.9 billion for the full year.

Stanley Black & Decker's fourth-quarter revenues were $4.0 billion, in line with the prior year. The company reported a GAAP EPS loss of ($0.72) and an adjusted EPS loss of ($0.10). They generated $520 million in free cash flow and reduced inventory by $500 million during the quarter. The company is guiding for a full-year 2023 GAAP EPS of ($1.65) to $0.85.

  • Fourth-quarter revenues were $4.0 billion, matching the previous year's performance.
  • The company's diluted GAAP EPS was ($0.72), while the adjusted diluted EPS was ($0.10).
  • Free cash flow for the fourth quarter reached $520 million, contributing to a $0.5 billion debt reduction.
  • The company is focused on streamlining the organization and prioritizing cash flow generation.

Headline financials

Total Revenue

$3.99B

Previous: $4.07B-2.0%
EPS (adj)

-$0.10

Previous: $2.14-104.7%
Capital Expenditures

$131M

Previous: $348M-62.5%
Free Cash Flow

$520M

Previous: $1.67B-68.9%
Net Income

$0.00

Previous: $458M-100.0%
Gross Profit

$754M

Previous: $1.56B-51.6%
Cash & Equivalents

$396M

Previous: $1.24B-68.1%
Total Assets

$25B

Previous: $23.6B+5.9%
Stock-Based Comp

$19.9M

Previous: $109M-81.8%

Revenue & EPS history

Stanley Black & Decker · Revenue · Quarterly

$3.99B

Q4 2022-2%vs Q4 2021
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

Stanley Black & Decker · $3.38B total across 1 segment · Q4 2022

  • Tools & Outdoor
    $3.38B

Forward guidance

Management expects 2023 EPS to be in the range of ($1.65) to $0.85 on a GAAP basis, and between $0.00 to $2.00 on an adjusted basis. Free cash flow is expected to approximate $0.5 billion to $1.0 billion.

Tailwinds

  • Prioritizing free cash flow generation
  • Focusing on serving its customers
  • Leveraging the SBD Operating Model to drive working capital efficiency
  • Positioning the Company for gross margin expansion
  • Enhanced balance sheet strength

Headwinds

  • Wider range of 2023 demand possibilities
  • Destocking scenarios
  • EPS loss expected in the front half
  • Impact of targeted production curtailments will continue to weigh on margins through the first half of 2023
  • Integration-related charges and other charges primarily due to supply chain transformation under the Global Cost Reduction Program

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 2022

Historical avgQ4 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

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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