Stanley Black & Decker (NYSE:SWK) Releases Quarterly Earnings Results, Beats Expectations By $0.76 EPS

Key Points

• EPS significantly beat expectations: Stanley Black & Decker reported $2.31 per share, $0.76 above consensus, while revenue of $3.73 billion was slightly below estimates.
• Growth was mixed: Third-quarter organic revenue rose 4%, led by 7% volume growth in Tools & Outdoor, but Outdoor revenue fell 12% and automotive-related demand remained soft.
• Guidance rose, partly on tariff refunds: The company lifted full-year adjusted EPS guidance to $5.95–$6.25 and free cash flow guidance to $1.0–$1.2 billion; tariff refunds contributed $0.67 to quarterly EPS. It also authorized a new $1 billion share-repurchase program.

Stanley Black & Decker (NYSE:SWK - Get Free Report) announced its quarterly earnings results on Wednesday. The industrial products company reported $2.31 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.55 by $0.76, FiscalAI reports. The firm had revenue of $3.73 billion for the quarter, compared to the consensus estimate of $3.74 billion. Stanley Black & Decker had a net margin of 4.07% and a return on equity of 8.78%.

Here are the key takeaways from Stanley Black & Decker's conference call:

• Third-quarter organic revenue grew 4%, led by 7% volume growth in Tools & Outdoor, with DEWALT, STANLEY, and CRAFTSMAN all growing. Power tools rose 10%, while North American commercial and industrial revenue increased by a mid-teens percentage.
• Stanley Black & Decker raised full-year adjusted EPS guidance to $5.95–$6.25 and free cash flow guidance to $1.0–$1.2 billion. However, the EPS outlook includes a $0.60 net benefit from tariff refunds, and the company said it has received most refunds available through the current process.
• Results included substantial temporary tariff-refund support: refunds contributed $0.67 to third-quarter EPS and about 430 basis points to adjusted gross margin. Management expects meaningful materials inflation in 2027 and plans to address it with productivity measures and price increases, which may be challenging to execute.
• Performance was uneven across businesses: Outdoor organic revenue fell 12% amid weather-related weakness, and Engineered Fastening’s automotive revenue declined 2% as customers grew more cautious. The company also expects automotive softness and inflation to weigh on Engineered Fastening margins.
• Free cash flow was about $836 million year to date, and the company repurchased roughly $250 million of shares in the quarter, completing its prior authorization. The board approved a new $1 billion repurchase authorization, while management said it remains on track for year-end net debt to adjusted EBITDA of around 2.5x.

Stanley Black & Decker Stock Up 15.1%

Stanley Black & Decker stock traded up $15.82 on Wednesday, hitting $120.44. 3,775,927 shares of the stock traded hands, compared to its average volume of 1,831,925. The company has a current ratio of 1.43, a quick ratio of 0.55 and a debt-to-equity ratio of 0.53. The business's fifty day simple moving average is $93.69 and its 200 day simple moving average is $85.83. The firm has a market cap of $18.19 billion, a P/E ratio of 29.37, a price-to-earnings-growth ratio of 1.58 and a beta of 1.15. Stanley Black & Decker has a 1 year low of $61.90 and a 1 year high of $122.68.

Stanley Black & Decker Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 22nd. Shareholders of record on Tuesday, December 1st will be issued a $0.84 dividend. The ex-dividend date is Tuesday, December 1st. This represents a $3.36 dividend on an annualized basis and a yield of 2.8%. Stanley Black & Decker's dividend payout ratio is 81.95%.

Analyst Ratings Changes

A number of analysts have recently issued reports on the company. Citigroup lifted their price target on Stanley Black & Decker from $100.00 to $107.00 and gave the company a "buy" rating in a research report on Friday, July 31st. Weiss Ratings restated a "hold (c+)" rating on shares of Stanley Black & Decker in a research report on Thursday, October 29th. Wells Fargo & Company cut their target price on shares of Stanley Black & Decker from $95.00 to $90.00 and set an "equal weight" rating for the company in a research report on Friday, October 16th. Robert W. Baird lifted their price target on Stanley Black & Decker from $84.00 to $102.00 and gave the stock a "neutral" rating in a research note on Monday, July 27th. Finally, Wall Street Zen downgraded shares of Stanley Black & Decker from a "strong-buy" rating to a "buy" rating in a research note on Saturday, October 24th. Five investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $94.82.

Key Headlines Impacting Stanley Black & Decker

Here are the key news stories impacting Stanley Black & Decker this week:

• Positive Sentiment: Third-quarter adjusted earnings were $2.31 per share, well above analysts’ estimates of about $1.54–$1.55 and up from $1.43 a year earlier. Revenue was approximately $3.73 billion, close to consensus, though one estimate put it slightly higher. Article: Stanley Black & Decker Surpasses Q3 Earnings and Revenue Estimates
• Positive Sentiment: The company raised its 2026 EPS and free-cash-flow guidance, with additional tariff refunds contributing to the increases. It also reported continued organic-growth and margin-expansion progress, excluding the refund benefit. Article: Stanley Black & Decker Reports 3Q 2026 Results
• Positive Sentiment: Stanley Black & Decker repurchased $250 million of shares in the quarter and authorized an additional $1 billion for future buybacks, supporting potential shareholder returns. Article: Stanley Black & Decker Reports 3Q 2026 Results
• Neutral Sentiment: Unusually heavy call-option buying suggests increased bullish positioning, but options activity is not a guarantee of further gains.
• Negative Sentiment: Higher steel and component costs are pressuring the business; the company signaled price increases in 2027, which may help offset costs but could also challenge demand. Article: Stanley Black & Decker Signals 2027 Price Hikes as Costs Surge

About Stanley Black & Decker

Stanley Black & Decker, Inc is a global manufacturer of tools, outdoor products and related equipment. The company serves professional contractors, industrial customers, do-it-yourself consumers and outdoor enthusiasts through a portfolio that includes power tools, hand tools, storage solutions, accessories, lawn and garden equipment, and other outdoor products.

Its brands include DEWALT, CRAFTSMAN, STANLEY, BLACK+DECKER, Cub Cadet, Hustler and Troy-Bilt. Products are sold through retailers, distributors, e-commerce channels and other commercial outlets, supporting construction, maintenance, manufacturing, automotive repair and residential applications.

The company was formed in 2010 through the merger of The Stanley Works and The Black & Decker Corporation.

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