Core Insights - Stanley Black & Decker reported its seventh consecutive quarter of organic growth, with a fourth quarter gross margin increase driven by a global cost reduction program [1][2][8] - The company generated strong cash flow in the fourth quarter, supporting its capital allocation priorities focused on shareholder dividends and debt reduction [1][2][10] Financial Performance - Fourth quarter revenues were $3.7 billion, flat compared to the prior year, with a 3% organic growth offset by divestitures and currency impacts [4][10] - Fourth quarter gross margin was 30.8%, up 120 basis points from the previous year, while adjusted gross margin was 31.2%, up 140 basis points [4][10] - Full year revenues totaled $15.4 billion, down 3% from the prior year, with full year adjusted gross margin at 30% [4][10] Cash Flow and Debt Management - Fourth quarter cash from operating activities was $679 million, with free cash flow of $565 million, contributing to a total debt reduction of $1.1 billion in 2024 [4][10][12] - The company aims to return adjusted gross margins to historical levels of over 35% while prioritizing cash flow generation and inventory optimization [5][9] Strategic Initiatives - The Global Cost Reduction Program is expected to generate $2 billion in pre-tax run-rate cost savings by the end of 2025, with $1.5 billion coming from supply chain transformation [8][12] - The company is focused on mid-single digit organic revenue growth, streamlining operations, and investing in customer-centric initiatives [5][9] Segment Performance - Tools & Outdoor segment sales were $3.2 billion, with a 2% increase driven by volume, while the Industrial segment saw a 15% decline in sales [11][10] - The Tools & Outdoor segment margin was 9.2%, slightly down from the prior year, while the Industrial segment margin was 10.7% [11][10] Future Outlook - The company anticipates muted but stable market demand in the first half of 2025, with potential for positive growth later in the year, particularly in professional construction and aerospace [3][12] - Management plans to provide 2025 planning assumptions, including EPS expectations and strategies to mitigate tariff impacts [12][13]

Stanley Black & Decker, Inc. (SWK) is scheduled to release fourth-quarter 2024 results on Feb. 5, before market open.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The Zacks Consensus Estimate for this New Britain, CT-based tool maker’s fourth-quarter revenues is pegged at $3.6 billion, indicating a decline of 4.4% from the year-ago quarter. The consensus estimate for adjusted earnings is pinned at $1.28 per share. The figure indicates an increase of 39.1% from the year-ago quarter ...

Company Performance - Shares of Stanley Black & Decker (NYSE: SWK) have declined by over 20% in the last few months [1] Market Factors - The decline in shares is attributed to a combination of tariff fears and the impact of rising interest rates [1] Analyst Background - The analyst has twenty years of experience in researching, writing, and investing in public markets [1] - The analyst focuses on companies with durable competitive advantages and small-cap special situations [1] - The analyst was a licensed broker and attorney [1]

Event Overview - DEWALT, a Stanley Black & Decker brand, showcased an electrifying activation on the exterior of Sphere in Las Vegas during the World of Concrete event [1][2] - The activation featured drones and was visible from various points across the city, highlighting the brand's new "Built for the Unbreakable" campaign [2][3][6] Campaign Details - The "Built for the Unbreakable" campaign celebrates the strength and dedication of construction workers, with a focus on the 12 million workers in the US construction industry [2][4] - The campaign utilized a drone-powered display to showcase the impact of construction workers on job sites [2][6] Product Spotlight - DEWALT highlighted its award-winning POWERSHIFT™ system, which optimizes workflow on concrete job sites and has been recognized as one of the most anticipated innovations in the industry [4][5][8] - The POWERSHIFT™ system reduces CO2e emissions by up to 60% compared to gas-powered equipment, aligning with government mandates for gas equipment compliance [8] Industry Impact - The DEWALT POWERSHIFT™ system was named one of TIME's Best Inventions and Popular Science's greatest innovations of 2024, setting a new standard for electrification in the concrete industry [8] - The system includes a range of cordless equipment such as vibrators, power screeds, and core drills, now available in North America [8] Brand Engagement - DEWALT's activation on Sphere's Exosphere is part of a broader strategy to engage consumers and showcase the brand's commitment to innovation in the construction industry [5][7] - Last year's activation, which focused on the launch of the POWERSHIFT™ system, set records for stakeholder engagement through in-person views and social media interactions [7]

2025 DEWALT Power Pulse Survey finds increasing readiness for electrification with 66% of construction managers and 59% of skilled workers surveyed saying complete electrification on jobsites may be just two years away Join DEWALT and industry influencers Kiefer Limeback (toolaholic) and Brent Langstaff (concrete.by.design) at World of Concrete on Jan. 22 for a panel discussion exploring future trends and innovations in construction Experience the industry-acclaimed DEWALT POWERSHIFT™ system, showcased alo ...

Cost Reduction and Margin Improvement - The company's cost-reduction program, initiated in mid-2022, has generated approximately $1.4 billion in pre-tax run-rate savings and reduced inventory by over $2 billion [1][2] - The program aims to achieve $2 billion in pre-tax run-rate savings by the end of the year, with a long-term adjusted gross margin target of over 35% [2] Divestment and Debt Reduction - The company divested its STANLEY Infrastructure business for $760 million in April 2024 to focus on core operations and reduce debt [3] - This divestment supports the company's capital-allocation priorities and debt reduction efforts [3] Shareholder Rewards - The company allocated $367.2 million for dividend payouts in the first nine months of 2024, reflecting a 1.8% year-over-year increase [4] - The quarterly dividend was increased by 1 cent to 82 cents per share in July 2024 [4] Market Challenges - The company faces lower demand in the consumer outdoor and do-it-yourself markets, particularly in the power tools business due to industrial sector slowdowns [5] - The automotive end market is weakening, driven by challenges in global automotive OEM light vehicle production [5] Financial Performance and Debt Concerns - The company's shares declined by 5% in the past month, compared to the industry's 7.8% decline [7] - Long-term debt stood at $5.6 billion at the end of Q3 2024, with current maturities of $500.2 million and cash equivalents of $298.7 million, lower than short-term borrowings of $387.4 million [7] Industry Stock Picks - Generac Holdings (GNRC) has a Zacks Rank of 1 (Strong Buy) with a trailing four-quarter average earnings surprise of 10.8% and a 0.6% increase in 2024 earnings consensus estimates over the past 60 days [8] - Alarm.com Holdings (ALRM) holds a Zacks Rank of 2 (Buy) with a trailing four-quarter average earnings surprise of 19.6% and a 7.2% increase in 2024 earnings consensus estimates over the past 60 days [10] - Applied Industrial Technologies (AIT) carries a Zacks Rank of 2 with a trailing four-quarter average earnings surprise of 5% and a 0.2% increase in 2024 earnings consensus estimates over the past 60 days [10]

Company Overview - Stanley Black & Decker, founded in 1843 and headquartered in the USA, is a global leader in Tools and Outdoor products, operating manufacturing facilities worldwide [3] - The company employs approximately 50,000 individuals and produces a range of innovative power tools, hand tools, storage solutions, digital jobsite solutions, outdoor products, and engineered fasteners [3] - Stanley Black & Decker's portfolio includes well-known brands such as DEWALT®, CRAFTSMAN®, STANLEY®, BLACK+DECKER®, and Cub Cadet® [3] Upcoming Earnings Call - Stanley Black & Decker will host its fourth quarter and full year 2024 earnings webcast on February 5, 2025, starting at 8:00 AM ET [1] - A news release detailing the financial results will be distributed prior to the market opening on the same day [1] - The webcast will be accessible through a live listen-only format or teleconference, with links available on the company's "Investors" section of its website [2] Investor Relations - Investor contacts for Stanley Black & Decker include Dennis Lange and Christina Francis, who serve as Vice President and Director of Investor Relations, respectively [4] - Contact information for investor inquiries includes phone numbers and email addresses for both contacts [4]

DEWALT is the only tool manufacturer represented in Popular Science's 2024 Best of What's New Awards; this marks the sixth industry accolade DEWALT POWERSHIFT™ has received since its unveiling at World of Concrete in January 2024TOWSON, Md., Dec. 18, 2024 /PRNewswire/ -- DEWALT, a Stanley Black & Decker (NYSE: SWK) brand and leader in total jobsite solutions, today announced that the DEWALT POWERSHIFT™ system has been named one of the 50 greatest innovations in 2024 by Popular Science's Best of What's New A ...

Cost Reduction and Profitability - The company has implemented a multi-year global cost-reduction program aimed at resizing the organization, reducing inventory, and optimizing the supply chain to improve profitability and support long-term growth [1] - The program has generated approximately $1.4 billion in pre-tax run-rate savings and reduced inventory by over $2 billion since its inception in mid-2022 [2] - The company expects to achieve $2 billion in pre-tax run-rate cost savings by the end of 2025 and aims for an adjusted gross margin of over 35% in the long term [2] Strategic Acquisitions - The company acquired two major providers of outdoor power equipment (MTD Holdings and Excel Industries) for $1.9 billion in December 2021, enhancing its cordless electric outdoor power equipment offerings [3] - These acquisitions strengthen the company's position in the outdoor products market, which is valued at approximately $25 billion, driven by the growing popularity of home and outdoor products and electrification trends [3] Shareholder Returns - The company paid $367.2 million in dividends in the first nine months of 2024, a 1.8% year-over-year increase, and repurchased shares worth $10 million during the same period [4] - In July 2024, the company increased its dividend by $0.01 to $0.82 per share, resulting in an annual dividend of $3.28 per share [4] Market Challenges - The Tools & Outdoor segment is facing weakness due to a soft DIY market and declining demand for power tools [5] - The Industrial segment is experiencing challenges due to the divestiture of the infrastructure business and softness in the automotive end market, driven by headwinds in global automotive OEM light vehicle production and constrained capex spending [5] Rising Expenses - The company is dealing with escalating expenses as it increases investments in innovation and growth initiatives, leading to higher SG&A expenses [6] - In the first nine months of 2024, SG&A expenses rose by approximately 1% year-over-year and increased by 90 basis points as a percentage of total revenues, reaching 21.2% [6] Stock Performance - The company's stock has declined by 14.9% over the past year, underperforming the industry's 3.5% growth [6]

Stanley Black & Decker (SWK 0.11%) is a tool-maker titan. It owns well-known brands DeWalt, Craftsman, Irwin, and LENOX, and, of course, Stanley and Black & Decker. But the stock has been in the doghouse. It's down 61.7% from its all-time high (reached in 2021) and up less than 21% from its 10-year low reached on March 19, 2020, during the height of the COVID-19-induced stock market plunge.The sell-off may come as a surprise, since Stanley Black & Decker is a Dividend King with a 3.9% yield and 56 consecuti ...