Stanley Black & Decker Beats Q2 Estimates

reported stronger-than-expected results for its second quarter on Thursday. The New Britain, Connecticut-based company posted quarterly net income of $227.2 million, or $1.49 per share, compared to $216.5 million, or $1.36 per share, in the year-ago period. Its earnings from continuing operations rose to $1.54 per share from $1.39 per share. Its revenue rose slightly to $2.87 billion from $2.86 billion. However, analysts were projecting a profit of $1.44 per share on revenue of $2.82 billion. The average estimate among 6 Estimize users was for earnings of $1.50 per share and revenue of $2.85 billion. Tools & Storage net sales climbed 4 percent year-over-year in the quarter, while Security net sales dropped 7 percent. Industrial net sales declined 4 percent in the quarter. Its gross margin rate expanded to 36.9 percent from 36.7 percent, while operating margin rate increased 70 basis points to 14.4 percent. Stanley Black & Decker's Chairman and CEO, John F. Lundgren, said, "Our results from the second quarter and first half of 2015, combined with our recently increased dividend, reflect the continued successful execution of the strategy we communicated at our Investor Day in May: leveraging our world-class franchises and brands to deliver substantial organic growth and margin expansion, while generating strong free cash flow and maintaining a shareholder friendly capital allocation program." For the full year, Stanley Black & Decker now projects GAAP earnings of $5.70 to $5.90 per share, versus earlier forecast of $5.65 to $5.85 per share. Stanley Black & Decker shares gained 1.88 percent to close at $108.17 yesterday.