Stanley Black Gears Up to Report Q1 Earnings: What's in Store?

Core Viewpoint - Stanley Black & Decker, Inc. is expected to report a decline in first-quarter revenues while showing an increase in adjusted earnings per share compared to the previous year [1][2]. Revenue Estimates - The consensus estimate for first-quarter revenues is $3.73 billion, reflecting a decline of 3.6% year-over-year [1]. - The Tools & Outdoor segment is anticipated to generate revenues of $3.2 billion, down 2% year-over-year, influenced by strong performance in the Engineered Fastening business but offset by weakness in the DIY market and power tool demand [3]. - The Industrial segment is expected to see revenues decline by 16% year-over-year to $489.3 million, impacted by softness in the automotive market and the divestiture of the infrastructure business [4]. Earnings Estimates - The consensus estimate for adjusted earnings is 68 cents per share, indicating a 21.4% increase from the previous year [1]. - The earnings estimate has remained stable over the past 30 days, with the company having a history of outperforming consensus estimates in the last four quarters, averaging a surprise of 16.2% [2]. Margin Performance - The company is expected to benefit from a cost-reduction program, with an anticipated adjusted gross margin of 30.5%, representing an expansion of 150 basis points year-over-year [5]. Foreign Exchange Impact - The company's operations are subject to foreign exchange headwinds, with a stronger U.S. dollar likely affecting overseas business performance [6]. Earnings Prediction Model - The earnings prediction model indicates a negative Earnings ESP of -3.02%, suggesting that the odds of an earnings beat are low this time [7][8].