Filed Under: ,
Tickers in this Article: SWK
Stanley Black & Decker's (NYSE:SWK) stock price has risen 21.1% since July 16, 2012 to close at $71.73 on October 11, 2012. When the company releases its third quarter earnings on Wednesday, October 17, 2012, it will hope to keep this momentum going.

A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: Can Earnings Guidance Accurately Predict The Future?

What to Expect: Analysts are expecting Stanley Black & Decker to report earnings of $1.45 per share, up 8.2% from a year ago, when the company reported earnings of $1.34 per share.

The consensus estimate hasn't changed in the last month, but it has dropped from $1.60 three months ago. For the fiscal year, analysts are projecting earnings of $5.51 per share.

Stanley Black & Decker is expected to report revenue of $2.84 billion for the quarter, beating last year's figure of $2.64 billion by 7.7%. For the fiscal year, expected revenue is $11.14 billion.

Company Performance: For the past three quarters, revenue has been increasing. It rose 7.3% to $2.81 billion in second quarter. Prior to that, the figure rose 11.4% in the first quarter and 13.4% in the fourth quarter of the last fiscal year.

The P/E ratio for SWK is 20.4, above the industry average of 11.59. This could mean that the market is expecting big things over the next few months or years. A simple P/E ratio can reveal the stock's real market value and show how the valuation compares to its industry group or a benchmark like the S&P 500 Index. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: How To Use The P/E Ratio And PEG To Tell The Future Of A Stock

The biggest recent change for Stanley Black & Decker's stock price came on September 6, 2012, when it rose $5.32 per share to $71.38.

The Competition: Stanley Black & Decker supplies tools and engineered solutions for professional, industrial, construction, and do-it-yourself use, as well as security solutions for industrial and commercial applications. The majority of analysts (nine of 12) rate Stanley Black & Decker a buy. Opinion about the stock has worsened recently, as buy ratings have dropped slightly over the last three months.

The company's closest competitor in the appliance and tool industry is Snap-on (SNA). Analysts are more optimistic about Stanley Black & Decker than about Snap-on. Only two out of four analysts rate the latter a buy.

comments powered by Disqus

Trading Center