Stanley Black & Decker Inc.(NYSE:SWK) saw its share fall in pre-market trading as investors drilled down into the power tools firm’s fourth quarter results.
The NYSE-listed firm reported quarterly net income of US$281.5mln, or US$1.84 per share, up from US$255.5mln, or US$1.71 per share a year earlier, with adjusted earnings per share of US$2.18 ahead of the US$2.15 per share consensus.
To adopt new accounting standards in first quarter
The group’s fourth quarter sales totalled US$3.41bn, up from US$2.92bn last year, also ahead of the US$3.28bn consensus, with sales of tools and storage items up 26% while security sales were down 4%.
For 2018, Stanley Black & Decker said it expects EPS of US$7.80 to US$8.00 and adjusted EPS of US$8.30 to US$8.50, with current consensus at US$8.36.
In a separate filing, the group said it will adopt new accounting standards in the first quarter of 2018 that will be applied retrospectively and apply to "Revenue from Contracts with Customers" and "Compensation-Retirement Benefits."
It said the change will result in a 1 US cent increase to full-year 2017 EPS and a 2 cents increase to full year 2016 EPS.
On December 22, Stanley Black & Decker acquired Nelson Fastener Systems for about US$440mln, with the transaction expected to be "modestly accretive" to 2018 EPS, excluding one-time charges.
In pre-market trading, Stanley Black and Decker shares were down 1.1% at US$172.