UPDATE: Stanley Black & Decker Posts Upbeat Q3 Earnings, Narrows Earnings Outlook

Stanley Black & Decker

reported better-than-expected earnings for the third quarter and narrowed its earnings forecast for the year. Stanley Black & Decker now projects full-year earnings of $5.52 to $5.58 per share, versus its earlier forecast of $5.50 to $5.60 per share. It raised its 2014 free cash flow forecast to around $800 million, versus at least $675 million. The New Britain, Connecticut-based company posted a quarterly profit of $236.7 million, or $1.47 per share, versus a year-ago profit of $166 million, or $1.04 per share. Excluding certain items, the company earned $1.55 per share. Its sales climbed 5.2% to $2.9 billion. However, analysts were estimating earnings of $1.44 per share on revenue of $2.87 billion. Its gross margin widened to 36.2% from 35.8%, while overhead costs slipped 2.9%. The company's construction and do-it-yourself segment reported a 9.1% rise in revenue to $1.45 billion. Industrial revenue jumped 4.9% to $866.2 million, while security sales dipped 3% to $582.5 million. Stanley Black & Decker's Chairman and CEO, John F. Lundgren, commented, “Our strong third quarter results demonstrate the benefits of our focus on driving organic growth, margin expansion and operating leverage through new product vitality accompanied by diligent price and cost management.” Stanley Black & Decker shares gained 1.93% to close at $86.09 yesterday.