The earnings call presented a mixed sentiment with significant progress in gross margin improvements and free cash flow generation, highlighting the effectiveness of the supply chain transformation. However, revenue declines and challenges in the automotive and consumer segments indicate ongoing market pressures. The company remains optimistic about long-term growth opportunities despite short-term headwinds.

Company Guidance

During the third quarter 2024 earnings call for Stanley Black & Decker (SWK), the company outlined several key financial metrics and strategic priorities. They reported $3.8 billion in revenue, a decline of 5% from the previous year, with organic revenue down 2%. Despite the challenging macroeconomic environment, the company achieved an adjusted gross margin of 30.5%, marking a 290 basis point improvement year-over-year, and an adjusted EBITDA margin of 10.8%, up 140 basis points. Free cash flow reached approximately $200 million, enabling a $100 million debt reduction. SWK reiterated its full-year free cash flow guidance of $650 million to $850 million and narrowed its adjusted EPS guidance range to $3.90 to $4.30. The company remains focused on its transformation strategy, targeting $1.5 billion in cost savings by the end of 2024 and $2 billion by 2025, with the aim of achieving a 35% plus gross margin.

Gross Margin Improvement

Adjusted gross margin was 30.5%, up 290 basis points versus the third quarter of last year, primarily attributed to the supply chain transformation.

Strong Free Cash Flow Generation

Free cash flow was approximately $200 million in the third quarter, supporting further balance sheet strength and allowing for a $100 million debt reduction.

DEWALT Growth

DEWALT professional tools gained share for the sixth consecutive quarter, contributing to organic growth.

Global Cost Reduction Program

The program remains on track for expected run rate savings of $1.5 billion by the end of 2024 and $2 billion by the end of 2025.

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Stanley Black & Decker (SWK) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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SWK Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Jul 20, 2018	2018 (Q2)	- / 2.57	2.01	27.86% (+0.56)	―	―
Oct 25, 2018	2018 (Q3)	- / 2.08	1.95	6.67% (+0.13)	―	―
Jan 22, 2019	2018 (Q4)	- / 2.11	2.18	-3.21% (-0.07)	―	―
Apr 24, 2019	2019 (Q1)	- / 1.42	1.39	2.16% (+0.03)	―	―
Jul 23, 2019	2019 (Q2)	- / 2.66	2.57	3.50% (+0.09)	―	―
Oct 24, 2019	2019 (Q3)	- / 2.13	2.08	2.40% (+0.05)	―	―
Jan 29, 2020	2019 (Q4)	- / 2.18	2.11	3.32% (+0.07)	―	―
Apr 30, 2020	2020 (Q1)	- / 1.20	1.42	-15.49% (-0.22)	―	―
Jul 30, 2020	2020 (Q2)	- / 1.60	2.66	-39.85% (-1.06)	―	―
Oct 27, 2020	2020 (Q3)	- / 2.89	2.13	35.68% (+0.76)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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SWK Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Oct 29, 2024	$101.98	$93.03	-8.78%
Jul 30, 2024	$94.78	$104.24	+9.98%
May 02, 2024	$89.49	$82.76	-7.52%
Feb 01, 2024	$90.04	$88.65	-1.54%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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