$SWK (+2,62ย %) | Stanley Black & Decker Q3'24 Earnings Highlights:
๐น Adjusted EPS: $1.22 (Est. $1.05) ๐ข
๐น Revenue: $3.75B (Est. $3.8B) ๐ด; DOWN -5% YoY
๐ธ Adj Gross Margin: 30.5% (Up 290bps YoY)
Narrows FY24 Guidance:
๐น Adjusted EPS: $3.90-$4.30 (Est. $4.20) ๐ก
๐น GAAP EPS: $1.15-$1.75 (Prev. $0.90-$2.00)
๐น Free Cash Flow: $650M-$850M (Reiterated)
Q3 SEGMENTS:
Tools & Outdoor:
๐น Sales: $3.26B; DOWN -3% YoY
๐ธ Organic Revenue: DOWN -2% (North America: -4%, Europe: +1%, Rest of World: +6%)
๐ธ Adjusted Segment Margin: 11.1% (Up 180bps YoY)
๐ธ Growth in DEWALT offset by weak consumer and DIY demand.
Industrial:
๐น Sales: $488M; DOWN -18% YoY
๐ธ Organic Revenue: DOWN -1%
๐ธ Adjusted Segment Margin: 13.9% (Up 170bps YoY)
๐ธ Aerospace growth offset by weakness in automotive markets.
Financial Metrics:
๐น Operating Cash Flow: $286M
๐น Free Cash Flow: $200M
๐น SG&A Expenses: 21.2% of sales (vs. 20.1% prior year)
๐ธ Adjusted SG&A Expenses: 20.8% (vs. 19.3% prior year)
Strategic Initiatives:
๐ธ Executing a Global Cost Reduction Program, targeting $2 billion in pre-tax cost savings by 2025, with $1.5 billion from supply chain improvements.
๐ธ Achieved $105M of cost savings in Q3, contributing to cumulative $1.4B savings since program inception.
๐ธ Supply Chain Transformation improving margins and supporting growth investments.