Stanley Black & Decker Narrows FY23 Outlook - Update

(RTTNews) - Tools maker Stanley Black & Decker, Inc. (SWK), while reporting higher profit and lower revenues in its second quarter, said it has narrowed fiscal 2023 earnings forecast on a reported and adjusted basis.

For the year, the company now expects loss per share between $0.50 and $1.25, while previous estimate was between a loss of $1.65 and a profit of $0.60.

Adjusted earnings per share are now expected to be between $0.70 to $1.30, compared to previous estimate between $0.00 and $2.00.

On average, 17 analysts polled by Thomson Reuters expect earnings of $0.96 per share for the year. Analysts' estimates typically exclude special items.

Free cash flow is now projcted to approximate $0.6 billion to $0.9 billion, compared to earlier estimate of $0.5 billion to $1.0 billion.

Patrick Hallinan, Executive Vice President and CFO, said, "Looking forward, as we continue to plan around a range of 2023 demand outcomes, we are executing our transformation to deliver the cost savings that are largely within our control and create flexibility to fund growth investments. Cash generation, gross margin improvement and balance sheet strength remain our top priorities as we continue positioning the Company for long-term growth and value creation."

In the second quarter, net earnings grew to $177.0 million from $87.6 million in the same period last year. Earnings per share were $1.18, up from $0.57 last year.

Adjusted loss was $16.9 million or $0.11 per share for the period, while analysts expected loss of $0.37 per share.

Revenues were $4.16 billion, down from $4.39 billion in the same period last year, but higher than Street estimate of $4.14 billion. .

In pre-market activity on the NYSE, Stanley Black & Decker shares were gaining around 2 percent to trade at $101.

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