Stanley Black & Decker Q4 Top-Line Misses Consensus, Margin Shrinks; Sees FY22 EPS Above Consensus

Stanley Black & Decker, Inc. SWK reported fourth-quarter FY21 revenue growth of 1.6% year-over-year to $4.1 billion, led by acquisitions and price realization, missing the consensus of $4.49 billion.
The gross margin was 28.3% compared to 35.1% a year ago, and the adjusted gross margin was 29%, down 630 bps.
Tools & Storage segment sales were $3.37 billion (+3.5% Y/Y), and segment profit margin of 7%, down by 1,320 bps.
Industrial segment sales were $609.7 million (-7.3% Y/Y), and segment profit margin of 8.8%, down by 450 bps.
Adjusted EPS decreased to $2.14 compared to $3.02 in 4Q20, beating the consensus of $2.05.
The adjusted operating profit decreased by 46.6% Y/Y to $366.1 million, and the margin contracted by 810 bps to 9%.
Stanley Black & Decker generated cash from operating activities for FY21 of $663.1 million, compared to $2.02 billion a year ago. Free cash flow was $144 million.
The company expects a ~$4 billion share repurchase program to be executed in 2022, with $2.0 billion - $2.5 billion expected to occur in Q1.
FY22 Outlook: Stanley Black & Decker expects adjusted EPS of $12.00 - $12.50 vs. consensus of $11.94.
It expects a free cash flow of ~$2 billion.
The company also expects to deliver total revenue growth in the mid-twenties.
Price Action: SWK shares are trading lower by 1.63% at $171.80 during the premarket session on Tuesday.

Earnings Calendar