Stanley Black & Decker (SWK) Shares Down Just a Day After Beating Expectations for Q4

Stanley Black & Decker (NYSE:SWK)’s history dates back to 1843 when its founder Frederick Stanley opened a small shop in Connecticut to manufacture bolts and hinges. The company transformed over the years and became a leading provider of industrial tools, household hardware, and security products. It is famous for its high-quality industrial tools and household appliances.

The New Britain, Connecticut-based company on Thursday announced better-than-expected financial results for the fourth quarter. It reported earnings of $458 million, or $2.88 per share for the quarter, translating to a surge of more than two folds from $199.1 million, or $1.32 per share in the comparable period of 2019. On an adjusted basis, earnings rose to $3.29 per share, easily beating the consensus forecast of $3.03 per share.

Revenue for the quarter came in at $4.408, up from $3.714 billion in the year-ago quarter. Analysts on average were expecting the company to generate revenue of $4.126 billion.

CFO Donald Allan Jr. said in a statement, “In 2020, we were proactive in preparing our cost base for the pandemic and the organization remained agile to capture revenue opportunities resulting from quickly improving markets which resulted in a historic financial performance.”

Looking forward, Stanley Black & Decker projected adjusted profit in the range of $9.70 per share to $10.30 per share for 2021, in line with the consensus forecast of $9.70 per share.

Stanley Black & Decker (SWK) shares rose 3.85 percent to $180.02 on Thursday following impressive quarterly results. However, the stock is down more than 3 percent in the mid-day trading Friday. If we look at SWK stock’s recent performance, its share price has increased about 7 percent over the past year.