Boston, MA 10\/18\/2013 (wallstreetpr) –\u00a0Stanley Black & Decker, Inc. (NYSE:SWK) shares dropped by over 16%, thanks to low third quarter earnings.\u00a0 Analysts believe that the impact of the government shutdown on equity markets will reflect both short term and long term results. SWK results for third and fourth financial segments will reveal the actual impact of the shutdown.<\/p>\n
According to Stanley Black & Decker\u2019s Chief Operating Officer, James Loree, the government shutdown definitely related to its profits. Highest demand for SWK products was from the\u00a0\u00a0 government, usually during the month of September and added that as this did not happen this year. Besides, SWK\u2019s quarter closing were disappointing with the overall environment for sales in hand-held industrial equipment challenging for all market players including:W.W. Grainger, Inc. (NYSE:GWW), Fastenal Company (NASDAQ:FAST).<\/p>\n
SWK Q3 earnings\u00a0 <\/b><\/p>\n
In a press release, SWK announced that,”2013 FY EPS Guidance Range, Excluding Charges, Revised To $4.90-$5.00 ($3.75-$3.95 On A GAAP Basis) From $5.40-$5.65 as a result of slower margin rate recovery within the Security segment.\u201d<\/p>\n
Across one financial quarter, the drop in matching EPS guidance is nearly 10% combined with drop in cash flow of nearly 20% is quite substantial resulting in the sudden dip in shares by nearly 16%.<\/p>\n
The poor performance in security segment is found to be the reason for nearly half the decline in achieving the full-year guidance. The rest of the decline is due to the governmental shutdown combined with overall poor global performance.<\/p>\n
Following the cancellation of shutdown today, there was a rally in both Dow Jones Industrial Average as well as the S&P 500 by over 1.4%.<\/p>\n
Stanley Black & Decker have a large presence in hand tools for industrial use segment under various brands like: Black& Decker, Stanley and Bostitch.<\/p>\n
Increase in total revenue<\/b><\/p>\n
Despite a fall in meeting EPS guidance, the company has noted a revenue increase of 9.6% for the same quarter.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 10\/18\/2013 (wallstreetpr) –\u00a0Stanley Black & Decker, Inc. (NYSE:SWK) shares dropped by over 16%, thanks to low third quarter earnings.\u00a0 Analysts believe that the […]<\/p>\n","protected":false},"author":2,"featured_media":10450,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[444,3486,2850,445,2851,3484,3471,3472,3470,3473,3485,3483],"stock_ticker":[],"class_list":["post-10449","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-fast","tag-fastenal-company","tag-fastenal-company-nasdaqfast","tag-gww","tag-nasdaqfast","tag-nysegww","tag-nyseswk","tag-stanley-black-decker-inc","tag-stanley-black-decker-inc-nyseswk","tag-swk","tag-w-w-grainger-inc","tag-w-w-grainger-inc-nysegww","entry"],"acf":[],"yoast_head":"\n