Benzinga | Jan 27, 2021 10:12AM EST

Stanley Black & Decker's Earnings Outlook

On Thursday, January 28, Stanley Black & Decker (NYSE:SWK) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts predict Stanley Black & Decker will report earnings of $2.97 per share on revenue of $4.10 billion. Stanley Black & Decker reported a profit of $2.18 per share when it published results during the same quarter last year. Sales in that period totaled $3.71 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to report earnings in line when it publishes results Thursday, earnings would be up 36.24%. Sales would be up 10.39% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 2.68 1.23 1.1 2.18EPS Actual 2.89 1.60 1.2 2.18Revenue Estimate 3.99 B 3.11 B 3.25 B 3.78 BRevenue Actual 3.85 B 3.15 B 3.13 B 3.71 B

Stock Performance

Shares of Stanley Black & Decker were trading at $176.53 as of January 26. Over the last 52-week period, shares are up 3.29%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Stanley Black & Decker is scheduled to hold the call at 08:00:00 ET and can be accessed here.