Boston, MA 10/17/2013 (wallstreetpr) – Stanley Black & Decker, Inc. (NYSE:SWK) reported its third quarter profits on Wednesday, October 16 in which it recorded profit growth of 44%. This growth is attributed to the higher revenues from its industrial and construction segment. However, the tool maker has slashed its full-year outlook. So what is its new guidance?
The tool maker now has earnings range of $4.90 – $5 per share for the current fiscal years, against the previous projection of $5.40 – $5.65 per share. But the company has explained why? It attributes this to operation constraints which have arisen from the ongoing government partial shutdown which it expects to impact negatively on its organic growth.
The company has also had to grapple with dwindling fortunes in its emerging markets, thus leading to forecast drop. Also, another challenge is the lower-than-expected margins for its security business segment. This has put a dent to its earnings hopes.
As of close of trading session of Wednesday, SWK was holding onto share value of $76.75 having lost 14.26%. Its market value stood at $12.29 billion.
In the just released quarterly results, SWK reported $166 million in profits, which reflects $1.04 per share. These new figures exceed $115.2 million in profit a year ago which represented $0.69 per share.
The toolmakers sales soared by 9.6% to hit $2.76 billion for the quarter. Equities analysts have expected SWK to post $1.38 earnings per share on revenue of $2.82 billion.
SWK has noted significant improvements in market segments such as DIY which recorded growth of 5.5% to hit larger-than-expected revenue of $1.39 billion. The industrial segment realized 25% jump while security was up 2.9%.
The company’s overall sales jump is attributed to their acquisitions which have performed superbly.
The cut in full-year forecast seems to the inevitable for this toolmaker company, especially if it wanted to set very realistic targets. The new guidance figures are now well within its range of reach and perhaps exceed