Stanley Black & Decker-Stanley Black's Q1 Earnings Beat Estimates, Sales Down Y/Y

Core Insights - Stanley Black & Decker, Inc. reported first-quarter 2025 adjusted earnings of 75 cents per share, exceeding the Zacks Consensus Estimate of 68 cents, with a year-over-year increase of 33.9% [1] - The company's net sales reached $3.74 billion, surpassing the consensus estimate of$ 3.73 billion, although it represented a decline of 3.2% year over year due to weaknesses in both segments [1] Segment Performance - Revenues from the Tools & Outdoor segment totaled $3.28 billion, a slight decrease of 0.1% year over year, compared to an estimate of$ 3.21 billion [2] - The Engineered Fastening segment generated revenues of $463.7 million, down 20.7% year over year, against an estimated$ 489.3 million [2] Margin Analysis - The cost of sales decreased by 5% year over year to $2.62 billion, while gross profit increased by 1.1% to$ 1.12 billion, resulting in a gross margin increase of 130 basis points to 29.9% [3] - Selling, general and administrative expenses rose by 1.8% year over year to $867.0 million, with adjusted EBITDA growing by 5.6% to$ 361.8 million, leading to a margin increase of 80 basis points to 9.7% [3] Balance Sheet and Cash Flow - At the end of the first quarter, cash and cash equivalents stood at $344.8 million, up from$ 290.5 million at the end of the fourth quarter of 2024, while long-term debt decreased to $4.76 billion from$ 5.6 billion [4] - Net cash used in operating activities was $420.0 million, down 2.6% year over year, with capital and software expenditures totaling$ 65 million, slightly down from $65.7 million a year ago [5] Future Guidance - The company anticipates total revenues to increase in low single digits and expects earnings to be around$ 3.30 (+/- $0.15) per share, a decrease from the previous expectation of$ 4.05 (+/- $0.65) [6] Zacks Rank - Stanley Black & Decker currently holds a Zacks Rank 3 (Hold) [7]