Black & Decker Jacks Up Its Forecast

(Stock price added.)

NEW YORK (TheStreet) -- Power tools are powering up Black & Decker's third-quarter expectations.

And this was not just a little bump up. The company now expects to earn 91 cents a share in its third quarter, significantly -- really significantly -- better than its prior forecast in the range of 35 cents to 45 cents a share.

The news sent shares climbing 7% to $50.53 in afternoon trading.

While the company's sales are expected to fall 23% during the quarter, a lower tax rate is expected to boost profit by 14 cents a share.

Contributing to the increased outlook were earlier-than-expected shipments of promotional industrial power tools and accessories, which were originally slated to come in during the fourth quarter, plus favorable currency translation.

Barclays initiated coverage of the company on Monday with an overweight rating and a $55 price target.

-- Reported by Jeanine Poggi in New York

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