Stanley Black & Decker Lifts FY24 Earnings View As Q2 Adj. EPS Beats Market; Stock Up In Pre-market

Stanley Black & Decker, Inc. (SWK), a provider of Tools and Storage products, on Tuesday lifted its fiscal 2024 earnings forecast, after second-quarter adjusted earnings beat market estimates.In pre-market activity on the NYSE, Stanley Black & Decker shares were gaining around 2.7 percent to trade at $99.For fiscal 2024, the company raised its outlook for earnings per share on a reported basis to $0.90 to $2.00 from previously expected $1.60 to $2.85 primarily due to the second quarter environmental reserve adjustments. The company also lifted adjusted earnings per share estimate to $3.70 to $4.50 from previous estimate of $3.50 to $4.50.Analysts on average expected the company to report earnings of $3.98 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.Free cash flow is increased to be approximately $650 million to $850 million from $600 million to $800 million estimated earlier.Patrick Hallinan, Executive Vice President and CFO, said, "Looking forward, we remain focused on executing our supply chain improvements to further improve gross margin and earnings in the second half of 2024 and our progress to date supports our improved full year adjusted earnings and free cash flow outlook. We remain confident that our actions to drive toward our target of 35%+ adjusted gross margins while funding additional organic revenue growth investments will continue generating positive results."In its second quarter, Stanley Black & Decker's loss was $11.2 million or $0.07 per share, compared to profit of $177.0 million or $1.18 per share in the same period last year.Adjusted earnings were $164.5 million or $1.09 per share for the period, compared to $0.11 loss per share a year ago. Analysts projected $0.84 per share.Revenue dropped 3 percent to $4.024 billion from $4.158 billion in the same period last year, while the Street expected revenues of $4.02 billion.Further, the company said it continued executing a series of initiatives that are expected to generate $1.5 billion of pre-tax run-rate cost savings by the end of 2024, growing to $2 billion by the end of 2025.For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com. For comments and feedback contact: editorial@rttnews.comBusiness News