SWK faces mounting pressure from falling segment sales, high costs and debt, dragging down earnings estimates.
Shares in toolmaker and engineered fastener company Stanley Black & Decker (SWK 4.20%) slumped by 21.9% in April, according to data from S&P Global Market Intelligence. There's no debating the reason.
Toolmaker Stanley Black & Decker (SWK -2.74%) beat earnings expectations for the first quarter, but revenue was light and the company sees rising cost pressures due to tariffs, according to its quarterly report from this morning. Investors viewed the glass as half-empty, sending shares of Stanley down as much as 5% for the day and down 3% heading into market close.
Weakness in both segments weighs on SWK's top line in the first quarter of 2025.
Stanley Black & Decker (SWK) shares fell Wednesday as the power tool maker anticipates the Trump administration's tariffs negatively affecting its profits this year as it alters its supply chain and raises prices.
The maker of DeWalt power tools and Craftsman wrenches said that the global tariff war kicked off by President Trump is expected to dent its full-year earnings per share by about 75 cents, based on the timing of its mitigation countermeasures.
SWK's Q1 2025 results are likely to benefit from strength in the Engineered Fastening business. However, weakness in the Industrial and Tools & Outdoor segments is likely to have weighed on its performance.
SWK benefits from strength in the Tools & Outdoor unit, cost-saving measures and shareholder-friendly policies. Softness in its Industrial unit and high debt are concerning.
Stanley Black & Decker (SWK -9.53%) declined by more than 11% in trading at noon ET today. The fall comes as the market sold off after a historic rally yesterday.
Stanley Black & Decker's growth is limited in the short term, but its long-term potential remains strong due to its dominant DeWalt and Craftsman brands. A history of acquisitions and poor capital allocation has weakened returns for investors, but the company has a durable competitive moat at its core. Current management is focusing on debt reduction and operational efficiency, aiming to restore margins and refocus on the company's strengths.
Shares in Stanley Black & Decker (SWK -14.35%) were down by about 12% at noon ET today. The move is in response to the recently announced tariff actions by the Trump administration.
SWK benefits from strength in the Tools & Outdoor segment, cost-saving measures and pro-investor policies. Softness in its Industrial unit and high debt are concerning.