Tools maker Stanley Black & Decker (SWK) this afternoon reported Q3 revenue and earnings per share ahead of expectations but offered a Q4 view below analysts’ estimates, citing some slowdown in U.S. and European sales growth.
Revenue in the three months ended in September rose 11% to $2.64 billion, yielding adjusted (non-GAAP) EPS of $1.34.
Analysts had been modeling $2.57 billion in revenue and $1.33 per share in non-GAAP profit.
Black & Decker bought back $350 million of its shares last quarter, it said, $100 million more than it previously planned to purchase.
For Q4, the company sees EPS of $1.30, below the consensus $1.34. Full-year revenue growth is expected to come to 3.5%, which is down from the prior 4% to 5% range the company had predicted. The company remarked that the diminished growth outlook “is largely driven by a retraction in unit volumes within US hand tools, as well as modest softness in Europe, except for the Engineered Fastening business.”
For 2012, the company sees EPS “at or near $6,” which is in line with consensus.
The company still expects $1.1 billion of free cash flow this year, it said, excluding charges related to M&A transactions, in particular its acquisition of Niscayah.Charges for that deal, completed last month, are expected in a range of $200 million to $300 million, the company said.
CEO John Lundgren remarked, “We are encouraged with the results our businesses continue to achieve in the midst of the current macroeconomic backdrop. With little to no market growth in many of the industries and developed regions where we have a presence, it is successful new product introductions and ongoing value propositions that have resulted in the market share gains crucial to our companyÂs success.”
