Stanley Black & Decker beats by $0.06, misses on revs; raises FY14 EPS above consensus
Reports Q2 (Jun) earnings of $1.43 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus Estimate of $1.37; revenues rose 1.0% year/year to $2.89 bln vs the $2.94 bln consensus.
- Co issues raised guidance for FY14, sees EPS of $5.50-5.60 from $5.35-5.50, excluding non-recurring items, vs. $5.43 Capital IQ Consensus Estimate.
- The gross margin rate for the quarter was 36.5%. Excluding charges the gross margin rate was also 36.5%, up 100 basis points from the prior year rate of 35.5%, as price, productivity and cost actions more than offset significant unfavorable currency.
- Guidance Commentary: "We anticipate a stronger full year financial performance within certain of our businesses, most notably the Industrial segment, and further Company-wide cost savings to more than offset slightly lower full year organic sales growth due to the weather impact on the CDIY outdoor product season and slower underlying emerging markets growth. This revised guidance is consistent with our EPS profile in recent years whereby approximately 45% of annual EPS typically falls within the first half of the year. We have strong conviction that our 2014 free cash flow will be at least $675 million inclusive of approximately $250 million of one-time payments primarily relating to 2013 restructuring actions."