Investing.com -- Stanley Black&Decker (NYSE:SWK) shares dropped roughly 3% premarket trading Tuesday after the company issued a soft earnings outlook for the full fiscal 2024 and missed Q3 revenue estimates.
Specifically, the tools company posted third-quarter earnings per share (EPS) of $1.22, above the consensus estimate of $1.05.
Revenue for the quarter stood at $3.75 billion, missing the $3.8 billion expected by analysts.
The Tools&Outdoor segment reported sales of $3.26 billion, falling short of the $3.31 billion estimate, while Industrial sales came in at $488 million, just under the expected $490.6 million.
Free cash flow for the quarter was $199.3 million, also below the anticipated $252.5 million.
Stanley Black&Decker reported a Q3 gross margin of 30.5%, up 290 basis points year-over-year.
"Our gross margin meaningfully expanded in the third quarter versus both the prior year quarter and the first half of 2024, driven by the disciplined execution of our supply chain transformation, and we remain on track to achieve an approximately 30% adjusted gross margin for the full year,” said Patrick D. Hallinan, Executive Vice President and CFO of Stanley Black&Decker.
“Our ability to deliver approximately $200 million of free cash flow* year-to-date supported our capital allocation priorities, including our dividend and debt reduction, along with reinvestment in growth initiatives.”
Looking ahead, the company expects full-year 2024 earnings per share in the range of $3.90 to $4.30, compared to the analyst consensus of $4.20.
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