Shares of Stanley Black & Decker
SWK,
dove 4.6% in premarket trading Thursday, after the tools maker reported fourth-quarter results that beat expectations but provided a full-year profit outlook that was less that what was forecast. The company swung to a net loss of $45.0 million, or 34 cents a share, from net income of $328.1 million, or $1.99 a share, in the year-ago period. Excluding nonrecurring items, the adjusted per-share loss of 10 cents beat the FactSet loss concerns of 34 cents. Sales inched up 0.1% to $3.99 billion from $3.98 billion, while the FactSet consensus was for a decline to $3.88 billion, as strength in outdoor power equipment acquisition and a 7% increase in prices offset a 10% drop in volume. The company said it realized $135 million of cost savings primarily from a reduced workforce and indirect spend directions. For 2023, the company expects adjusted EPS of breakeven to $2.00, well below the FactSet consensus of $4.07. The stock has rallied 24.4% over the past three months while the S&P 500
SPX,
has gained 9.6%.
Credit: marketwatch.com