Stanley Black & Decker (SWK) Stock Surges on Q2 Earnings, Revenue Beat

Stanley Black & Decker (SWK) stock is advancing Friday morning on fiscal 2016 second quarter results despite also announcing that CEO John Lundgren will retire on July 31.
By Natalie Walters ,

NEW YORK (TheStreet) -- Shares of Stanley Black & Decker (SWK) - Get Report are up 4.52% to $120.14 in mid-morning trading after announcing better than expected fiscal 2016 second quarter results. 

The company reported adjusted earnings of $1.84 per share, topping analysts' estimates of $1.72 per share for the period. 

Stanley Black & Decker reported revenue of $2.93 billion for the period, which exceeded Wall Street's expectations of $2.91 billion. 

Additionally, the company raised its 2016 full-year earnings per share forecast to the $6.30 to $6.50 range from the $6.20 to $6.40 range as a result of volume growth and expanding profit margins. 

Separately, the company announced that CEO John Lundgren, who turns 65 in September, will retire on July 31 after being with Stanley Black & Decker for 12 years. James Loree, currently president and chief operating officer, will succeed Lundgren as CEO on August 1. 

Stanley Black & Decker stock has risen almost 8% in the last 12 months.  

The New Britain, CT-based company is a provider of tools and storage, commercial electronic security and engineered fastening systems.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate STANLEY BLACK & DECKER INC as a Buy with a ratings score of A. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, compelling growth in net income and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

You can view the full analysis from the report here: SWK

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