Research Desk Line-up: Proto Labs Post Earnings Coverage

LONDON, UK / ACCESSWIRE / October 30, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Stanley Black & Decker, Inc. (NYSE: SWK), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=SWK, following the Company's release of its financial results on October 24, 2017, for the third quarter fiscal 2017 (Q3 FY17). The New Britain, Connecticut-based Company reported a 14% and 16% y-o-y growth in its net sales and normalized diluted EPS for the quarter; outperforming market expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Machine Tools & Accessories industry. Pro-TD has currently selected Proto Labs, Inc. (NYSE: PRLB) for due-diligence and potential coverage as the Company announced on October 26, 2017, its financial results for Q3 2017 which ended on September 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Proto Labs when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on SWK; also brushing on PRLB. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=SWK

http://protraderdaily.com/optin/?symbol=PRLB

Earnings Reviewed

For the three months ended on September 30, 2017, Stanley Black & Decker reported net sales of $3.30 billion, which was above the $2.88 billion recorded at the end of Q3 FY16. Net sales for the reported beat market forecasts of $3.16 billion. The Company attributed the growth in quarterly net sales to robust organic growth of 7%.

The tool Company reported net earnings attributable to common shareholders of $274.2 million, or $1.80 per diluted share, in Q3 FY17 compared to $248.9 million, or $1.68 per diluted share, in Q3 FY16. Meanwhile, the normalized net earnings excluding merger & acquisition charges was $298.2 million, or $1.95 per diluted share, which was also above Wall Street expected net earnings of $1.87 per diluted share.

Operating Metrics

In the three months ended on September 30, 2017, the Company reported gross margin of $1.25 billion, or 38.0% of net sales, compared to $1.08 billion, or 37.6%, in Q3 FY16. The Company's normalized gross margin during Q3 FY17 came in at $1.26 billion, or 38.2%.

During the reported quarter, selling, general, and administrative (SG&A) expenses came in at $763.4 million versus $645.4 million in the last year's same quarter. The Company reported operating margin of $488.7 million, or 14.8% of net sales, for Q3 FY17 compared to $438.7 million, or 15.2% of net sales, in the previous year's comparable quarter. Meanwhile, income from operations rose to $400.9 billion during Q3 FY17 from $372.8 billion in Q3 FY16.

Stanley Black & Decker's Segment-Wise

The Tools & Storage segment's net sales were $2.32 billion for Q3 FY17 compared to $1.90 billion in the last year's comparable quarter. The segment's profit was $396.6 million, or 17.1% of the segment's net sales, for Q3 FY17 versus $330.0 million, or 17.4% of the segment's net sales, in Q3 FY16.

The Company's Industrial segment's net sales also increased to close at $503.6 million in Q3 FY17 from $462.4 million in Q3 FY16. Meanwhile, the segment's profit also grew to $93.8 million, or 18.6% of the segment's net sales, in Q3 FY17 from $80.4 million, or 17.4% of the segment's net sales, in Q3 FY16.

The Security segment's net sales fell to $476.8 million in Q3 FY17 from $522.7 million in Q3 FY16. The segment's profit for the reported quarter was $54.0 million, or 11.3% of the segment's net sales compared to $71.4 million, or 13.7% of the segment's net sales, in Q3 FY16.

Cash Flow & Balance Sheet

During the third quarter ended on September 30, 2017, Stanley Black & Decker generated $356.9 million in cash from operations versus $246.7 million in the third-quarter of fiscal 2016. The Company spent $91.0 million as capital and software expenditures in Q3 FY17, up from $78.1 million spent during the previous year's same quarter. Furthermore, free cash flow for the reported quarter was $265.9 million compared to $168.6 million in Q3 FY16.

Stanley Black & Decker had $483.3 million in cash and cash equivalents as on September 30, 2017, compared to $1.13 billion as on December 31, 2016. Furthermore, the Company's long-term debt stood flat at $3.82 billion on September 30, 2017.

Dividend

In the separate press release on October 18, 2017, the Company's Board of Directors announced regular fourth quarter cash dividend of $0.63 per common share. The dividend is payable on December 19, 2017, to shareholders of record as of the close of business on December 01, 2017

Outlook

For the full year FY17, Stanley Black & Decker expects GAAP EPS in the range of $8.20 to $8.30, while adjusted EPS is forecasted to be between $7.33 and $7.43. The Company's management further anticipates organic growth of 6% during full-year FY17.

Stock Performance

Stanley Black & Decker's share price finished last Friday's trading session at $164.71, slightly advancing 0.01%. A total volume of 619.36 thousand shares have exchanged hands. The Company's stock price soared 17.07% in the last three months, 21.01% in the past six months, and 43.19% in the previous twelve months. Additionally, the stock skyrocketed 43.61% since the start of the year. Shares of the Company have a PE ratio of 20.80 and have a dividend yield of 1.53%. The stock currently has a market cap of $25.26 billion.

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