Stanley Black & Decker (NYSE:SWK) (SBD) shares rose after the industrial equipment provider’s third quarter earnings topped estimates.
The company’s earnings per share (EPS) were $1.05, ahead of estimate of $0.84.
SBD posted revenue of $4 billion, ahead of the consensus forecast of $4.02 billion.
Revenues decreased 4% from the year-ago quarter due to lower outdoor and DIY volume and attached tool customer destocking.
The company also raised its adjusted EPS forecast for full-year 2023 to a range of $1.10 to $1.40 compared to prior guidance of $0.70 to $1.30.
It continues to expect free cash flow in the range of $0.6 billion to $0.9 billion.
The company, which has been taking actions to reduce costs and inventory, expects to exceed its initial 2023 pre-tax run-rate cost savings target of $1 billion by the end of 2023 and is on track to make about $2 billion in savings by the end of 2025.
Since mid-2022, its actions have delivered $875 million in pre-tax run-rate savings and reduced inventory by $1.7 billion.
“We successfully advanced our strategic business transformation in the third quarter,” SBD CEO Donald Allan Jr. said in a statement.
“Our progress to date is encouraging, and I am confident that by executing our strategy we are positioning the company to deliver higher levels of organic growth, profitability and cash flow as well as strong long-term shareholder returns.”
SBD shares gained 8.7% at US$83.93 in early trade on Friday.
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