By Dean Seal
Stanley Black & Decker posted a steeper-than-expected drop in quarterly sales as softer volumes offset an uptick in prices, sending the stock sharply lower.
Shares of the power-tools maker were down 12% at $90.99 in early trading, falling into negative territory year-to-date. The stock is on track for its biggest single-day decline in more than two years.
The New Britain, Conn., company Tuesday said its third-quarter sales dropped 5% to $3.75 billion in the third quarter, missing projections for $3.8 billion, according to FactSet.
The top line was dented by a "weak consumer and automotive production backdrop," Chief Executive Donald Allan Jr. said. Volumes were down, partially offset by higher prices.
Margins weakened during the quarter as well from investments the company said are designed to help it gain market share.
Quarterly earnings came in at $91.1 million, or 60 cents a share. That's up from $4.7 million, or 3 cents a share, in a year-ago quarter that included a substantial non-cash impairment charge.
Stripping out one-time items, adjusted earnings were $1.22 a share. Analysts polled by FactSet had been expecting $1.05 a share.
Stanley Black & Decker narrowed its full-year earnings view by 25 cents at each end to $1.15 to $1.75 a share and narrowed its adjusted earnings outlook by 20 cents at each end to $3.90 to $4.30 a share.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
October 29, 2024 10:38 ET (14:38 GMT)
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