Stanley Black & Decker's stock experienced a 5.38% plunge in the pre-market trading session on Wednesday. The tool company's shares were under pressure due to concerns over muted demand and the potential impact of tariffs on its margins.
The company reported its fiscal Q4 earnings, with adjusted earnings per share of $1.49, exceeding analysts' expectations. However, the outlook for the upcoming year raised concerns among investors. Stanley Black & Decker projected its fiscal 2025 adjusted earnings per share to be around $5.25, plus or minus $0.50, which fell short of the consensus estimate of $5.41.
Additionally, the company acknowledged the challenges posed by tariffs and stated that it is preparing "countermeasures" to mitigate their impact. Stanley Black & Decker plans to respond with supply chain and pricing actions to maintain its margin targets, but these measures may influence its financial performance in the coming year.