Last week, you might have seen that Stanley Black & Decker, Inc. (NYSE:SWK) released its yearly 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Stanley Black & Decker after the latest results.

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. Statutory earnings per share are predicted to bounce 154% to US$4.72. Before this earnings report, the analysts had been forecasting revenues of US$15.4b and earnings per share (EPS) of US$5.33 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at US$101, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. Currently, the most bullish analyst values Stanley Black & Decker at US$121 per share, while the most bearish prices it at US$87.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.5% by the end of 2025. This indicates a significant reduction from annual 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 biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Stanley Black & Decker. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$101, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Stanley Black & Decker analysts - going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with Stanley Black & Decker (including 1 which is potentially serious) .

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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.