Stock Monitor: Proto Labs Post Earnings Reporting

LONDON, UK / ACCESSWIRE / May 4, 2018 /If you want access to our free earnings report on Stanley Black & Decker, Inc. (NYSE: SWK) ("SWK") all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=SWK. On April 20, 2018, SWK reported financial results for the first quarter of 2018 ending March 31, 2018. The Company surpassed analysts' consensus estimates for earnings as well as revenue in Q1 FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for Proto Labs, Inc. (NYSE: PRLB), which also belongs to the Industrial Goods sector as the Company Stanley Black & Decker. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Stanley Black & Decker most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

SWK's total revenues reached $3.21 billion for Q1 FY18, reflecting an increase of 12.36% from $2.86 billion in Q1 FY17. The reported revenue number exceeded analysts' consensus estimates of $3.10 billion. This growth in revenues was led by 4% organic growth, 6% growth from acquisitions, and 4% from favorable currency translation, offset by a 2% decline due to divestitures.

During Q1 FY18, SWK's cost of sales was $2.04 billion, 14.15% higher than the $1.79 billion reported in Q1 FY17. The Company's gross profit increased 9.35% to $1.17 billion in the quarter under review from $1.07 billion in the year-ago same quarter. However, SWK's gross margin percentage dipped 1 percentage point to 36.32% in Q1 FY18.

SWK incurred selling, general, and administrative (SG&A) expenses of $785.60 million in Q1 FY18, 13.81% higher than the $690.30 million reported in Q1 FY17. The Company's operating profit advanced 1.17% to $380.10 million in the reported quarter from $375.70 million in the previous year's same quarter.

Net earnings attributable to SWK's common stockholders for the quarter ending March 31, 2018, was $170.60 million, a decrease of 56.67% from $393.70 million in the quarter ending March 31, 2017. The Company's diluted earnings per share also fell 57.31% to $1.11 in Q1 FY18 from $2.60 in Q1 FY17. The reported earnings included acquisition-related and other charges. SWK's normalized diluted earnings per share (DEPS), excluding these non-recurring items, was $1.39 in Q1 FY18, an increase of 6.92% from $1.30 in Q1 FY17. This was higher than analysts' consensus estimates of $1.35 per share.

Stanley Black & Decker's Segment Details

During Q1 FY18, the Tools and Storage segment's net sales were $2.22 billion, up 16.93% on a y-o-y basis. This growth was led by new product innovation, including the expansion of the DEWALT FlexVolt system, strong commercial execution, and a healthy US tool market. This segment had a normalized profit rate of 14.27% in Q1 FY18, 1.66 percentage points lower than 15.93% million in Q1 FY17.

The Industrial segment reported revenues of $504.20 million in Q1 FY18, an increment of 5.11% from the prior year's same quarter. This segment had a normalized profit rate of 16.36% in the quarter under review versus 17.74% in the previous year's comparable quarter.

The Security segment generated revenues of $489.30 million in Q1 FY18, an increase of 1.58% from Q1 FY17. This segment had a normalized profit rate of 9.57% in Q1 FY18, a decrease of 1 percentage point from 10.57% in Q1 FY17.

Cash Matters

SWK had cash and cash equivalents of $405.60 million as on March 31, 2018, compared to $637.50 million as on December 30, 2017. The Company's long-term debt at the end of Q1 FY18 was $2.83 billion, a decrease of 0.6 million from Q4 FY17.

SWK's cash used in operating activities for Q1 FY18 was $349.40 million compared to cash outflow from operating activities of $314.10 million in Q1 FY17. The Company had a free cash outflow of $455.70 million in the reported quarter, a change of 20.30% from $378.80 million in the year ago corresponding quarter.

During Q1 FY18, SWK entered into a capped call transaction that provides the right to purchase 3.2 million shares through March 2021. This is in-line with the Company's long-term strategy to return approximately 50% of free cash flow to shareholders through dividends and opportunistic share repurchases. The Company paid dividends of $94.90 million in the quarter under review, an increase of 9.46% from $86.70 million in the previous year's same quarter.

SWK had capital and software expenditures of $106.30 in Q1 FY18, 64.30% higher than the $64.70 million in Q1 FY17.

Outlook

SWK revised its 2018 GAAP EPS guidance to $7.40 to $7.60, from the previous guidance of $7.80 to $8.00, due to the impact of M&A related charges associated with the Nelson Fastener Systems acquisition and one-time tax charge. Besides, the Company also reiterating its adjusted EPS range of $8.30 to $8.50 and its free cash flow conversion estimate of approximately 100% for FY18.

On April 19, 2018, SWK's Board of Directors approved a regular second quarter cash dividend of $0.63 per common share, payable on Tuesday, June 19, 2018, to shareholders of record as on Wednesday, June 06, 2018.

Stock Performance Snapshot

May 3, 2018 - At Thursday's closing bell, Stanley Black & Decker's stock marginally fell 0.25%, ending the trading session at $139.35.

Volume traded for the day: 981.26 thousand shares.

Stock performance in the past twelve-month period ? up 2.25%

After yesterday's close, Stanley Black & Decker's market cap was at $21.28 billion.

Price to Earnings (P/E) ratio was at 20.30.

The stock has a dividend yield of 1.81%.

The stock is part of the Industrial Goods sector, categorized under the Machine Tools & Accessories industry. This sector was up 0.3% at the end of the session.

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