Stanley Black Gears Up to Report Q3 Earnings: What's in the Offing?

Stanley Black & Decker, Inc. SWK is scheduled to release third-quarter 2025 results on Nov. 4, before market open.

The Zacks Consensus Estimate for this New Britain, CT-based tool maker’s third-quarter revenues is pegged at $3.77 billion, indicating growth of 0.5% from the year-ago quarter. The consensus estimate for adjusted earnings is pinned at $1.19 per share. The figure indicates a decline of 2.5% from the year-ago quarter’s number.

The consensus estimate for earnings has declined 10.5% over the past 30 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average surprise being 57.3%.

Let’s see how things have shaped up for Stanley Black before the announcement.

Factors Likely to Have Shaped SWK’s Quarterly Performance

Stanley Black’s Tools & Outdoor segment’s results are expected to benefit from the solid momentum in its DEWALT business and recovery in demand for the outdoor products. However, persistent softness in the DIY market and depressing demand for hand tools remain concerning. We expect the Tools & Outdoor segment’s revenues to increase 1.5% year over year to $3.31 billion.

Softness in the automotive end market, owing to headwinds in the automotive OEM light vehicle production, is expected to have impacted the Engineered Fastening segment’s third-quarter performance. Also, weakness in the general industrial market and the divestiture of the infrastructure business are likely to weigh on the segment’s top-line results. We expect the Engineered Fastening segment’s revenues to decline 7.5% year over year to $451.2 million.

Also, escalating operating expenses are likely to weigh on the company’s bottom-line results. For the quarter under review, we anticipate selling, general and administrative (SG&A) expenses to be $833.3 million, indicating a 4.5% increase from the year-earlier level.

Nevertheless, SWK’s cost-reduction program is likely to have supported its bottom line in the to-be-reported quarter. The company is expected to have put up a healthy margin performance, aided by supply-chain transformation and inventory reduction efforts. We anticipate SWK’s adjusted operating margin to be 10.9%, indicating an expansion of 120 basis points on a year-over-year basis.

Stanley Black & Decker, Inc. Price and EPS SurpriseStanley Black & Decker, Inc. Price and EPS Surprise

Stanley Black & Decker, Inc. price-eps-surprise | Stanley Black & Decker, Inc. Quote

Earnings Whisper

Our proven model does not conclusively predict an earnings beat for Stanley Black this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.

Earnings ESP: Stanley Black has an Earnings ESP of -0.95% as the Most Accurate Estimate is pegged at $1.18 per share, which is lower than the Zacks Consensus Estimate of $1.19. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: SWK presently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Story Continues

Stocks With the Favorable Combination

Here are three companies, which according to our model, have the right combination of elements to post an earnings beat this season.

Grupo Cibest S.A. CIB has an Earnings ESP of +4.89% and a Zacks Rank of 1 at present. Grupo Cibest is scheduled to release third-quarter 2025 results on Nov. 14.

Grupo Cibest’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.5%.

Sealed Air Corporation SEE has an Earnings ESP of +1.28% and a Zacks Rank of 3 at present. The company is slated to release third-quarter 2025 results on Nov. 4.

Sealed Air’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 19%.

Tennant Company TNC has an Earnings ESP of +2.36% and a Zacks Rank of 3 at present. Tennant is slated to release third-quarter 2025 results on Nov. 3.

Tennant’s earnings surpassed the Zacks Consensus Estimate twice in the trailing four quarters, the average surprise being a negative 2.9%.

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This article originally published on Zacks Investment Research (zacks.com).

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