SWK gains from its cost-saving measures, portfolio restructuring actions and pro-investor policies. Softness in its Tools & Outdoor unit and high debt are concerning.
SWK is set to benefit from its cost-reduction program and accretive acquisitions. However, weakness in both segments remains concerning.
Stanley Black & Decker (SWK 0.11%) is a tool-maker titan. It owns well-known brands DeWalt, Craftsman, Irwin, and LENOX, and, of course, Stanley and Black & Decker.
Stanley Black & Decker is poised for growth due to improving housing, automotive, and industrial markets, driven by interest rate cycle reversal and strong aerospace demand. The company is reinvesting cost savings into core brands DEWALT, STANLEY, and CRAFTSMAN, gaining market share despite challenging macro conditions. SWK's $2 billion cost-reduction plan and operating leverage from volume recovery are expected to enhance margins, with significant progress already made.
Coming off of the tool maker's investor day, Stanley Black & Decker (SWK) CEO Don Allan joins Yahoo Finance executive editor Brian Sozzi for a conversation about the company's transformation, that entails cutting $2 billion in costs and ramping up the brand's supply chain and innovation.
SWK gains from its cost-reduction program, divestiture of non-core assets and shareholder-friendly policies. Softness in the Tools & Outdoor unit remains concerning.
The toolmaker's earnings report was disappointing, but understandable given the circumstances.
Weakness in both segments weighs on SWK's top line in the third quarter of 2024.
Stanley Black & Decker (SWK) shares plunged as the toolmaker posted worse-than-expected results and narrowed its guidance, citing falling consumer demand and a slowdown in the auto sector.
Stanley Black & Decker and Techtronic Industries have been highlighted in this Industry Outlook article.
Ongoing weakness in the manufacturing sector impacts the near-term outlook for the Zacks Manufacturing-Tools & Related Products industry. TTNDY and SWK are a couple of stocks to retain.
SWK's Q3 2024 results are likely to gain from strength in the Engineered Fastening unit. However, the weakness in the Industrial and Tools & Outdoor segments is likely to have weighed on its performance.