Stanley Black & Decker, Inc. (NYSE:SWK) Just Released Its Annual Results And Analysts Are Updating Their Estimates

Last week, you might have seen that Stanley Black & Decker, Inc. (NYSE:SWK) released its annual result to the market. The early response was not positive, with shares down 4.5% to US$85.91 in the past week. Results were roughly in line with estimates, with revenues of US$15b and statutory earnings per share of US$1.95. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Stanley Black & Decker

Taking into account the latest results, Stanley Black & Decker's 14 analysts currently expect revenues in 2025 to be US$15.3b, approximately in line with the last 12 months. Per-share earnings are expected to surge 154% to US$4.72. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$15.4b and earnings per share (EPS) of US$5.33 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.

The consensus price target held steady at US$101, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Stanley Black & Decker, with the most bullish analyst valuing it at US$121 and the most bearish at US$87.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Stanley Black & Decker shareholders.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that revenue is expected to reverse, with a forecast 0.5% annualised decline to the end of 2025. That is a notable change from historical growth of 3.9% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.2% annually for the foreseeable future. It's pretty clear that Stanley Black & Decker's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Stanley Black & Decker going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Stanley Black & Decker has 3 warning signs (and 1 which is concerning) we think you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.