Stanley Black & Decker stock was falling hard on Tuesday after providing a poor guidance for 2019.
Stanley Black & Decker (NYSE:SWK) notes that it is expecting earnings per share for the full year of 2019 to range from $8.45 to $8.65. This is a real blow to SWK stock as Wall Street is expecting earnings per share for the year to come in at $8.78.
According to Stanley Black & Decker, it is expecting free cash flow conversion for the year to be between 85% and 90%. The company says that this will be due to it making payments in connection to its fourth quarter 2018 cost reduction program.
The bad news for Stanley Black & Decker stock comes alongside its earnings report for the fourth quarter of 2018. The company reported earnings per share of $2.11 for the quarter. This is down from its earnings per share of $2.18 from the same time last year. It did manage to beat Wall Street’s earnings per share estimate of $2.10 for the quarter, but couldn’t keep Stanley Black & Decker stock from falling today.
The earnings report for the fourth quarter of the year also includes revenue of $3.64 billion. That’s an increase over the company’s revenue of $3.46 billion reported in the same period of the year prior. It is also better than analysts’ revenue estimate of $3.62 billion for the period, but still wasn’t able to keep Stanley Black & Decker from declining today.
SWK stock was down 13% as of Tuesday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.