$SWK (+3.33%) | Stanley Black & Decker Q3'24 Earnings Highlights:

🔹 Adjusted EPS: $1.22 (Est. $1.05) 🟢

🔹 Revenue: $3.75B (Est. $3.8B) 🔴; DOWN -5% YoY

🔸 Adj Gross Margin: 30.5% (Up 290bps YoY)

Narrows FY24 Guidance:

🔹 Adjusted EPS: $3.90-$4.30 (Est. $4.20) 🟡

🔹 GAAP EPS: $1.15-$1.75 (Prev. $0.90-$2.00)

🔹 Free Cash Flow: $650M-$850M (Reiterated)

Q3 SEGMENTS:

Tools & Outdoor:

🔹 Sales: $3.26B; DOWN -3% YoY

🔸 Organic Revenue: DOWN -2% (North America: -4%, Europe: +1%, Rest of World: +6%)

🔸 Adjusted Segment Margin: 11.1% (Up 180bps YoY)

🔸 Growth in DEWALT offset by weak consumer and DIY demand.

Industrial:

🔹 Sales: $488M; DOWN -18% YoY

🔸 Organic Revenue: DOWN -1%

🔸 Adjusted Segment Margin: 13.9% (Up 170bps YoY)

🔸 Aerospace growth offset by weakness in automotive markets.

Financial Metrics:

🔹 Operating Cash Flow: $286M

🔹 Free Cash Flow: $200M

🔹 SG&A Expenses: 21.2% of sales (vs. 20.1% prior year)

🔸 Adjusted SG&A Expenses: 20.8% (vs. 19.3% prior year)

Strategic Initiatives:

🔸 Executing a Global Cost Reduction Program, targeting $2 billion in pre-tax cost savings by 2025, with $1.5 billion from supply chain improvements.

🔸 Achieved $105M of cost savings in Q3, contributing to cumulative $1.4B savings since program inception.

🔸 Supply Chain Transformation improving margins and supporting growth investments.