NEW YORK (TheStreet) -- Shares of Stanley Black & Decker (SWK) - Get Report are declining 7.23% to $89.17 in mid-morning trading on Thursday, after the toolmaker reported revenue that came in below analysts' expectations for the 2015 fourth quarter.
Also pressuring the stock, the company has forecast a continuation of the challenging macroeconomic conditions into this year. The strong dollar also negatively impacted the New Britain, CT-based company.
For the most recent quarter Stanley Black & Decker reported earnings of $1.78 per share on revenue of $2.8 billion, a 5% decline from the same period in 2014.
Analysts surveyed by Thomson Reuters had been anticipating earnings of $1.76 per share on revenue of $2.94 billion for the period.
"As we look forward, we believe we are well positioned to manage through a continued difficult environment by leveraging our world-class franchises and brands to deliver solid organic growth and strong free cash flow while maintaining our disciplined and shareholder friendly approach to capital allocation," company CEO John F. Lundrgen said in a statement.
Insight from TheStreet Research Team:
TheStreets Jim Cramer, portfolio manager of the Action Alerts Pluscharitable trust portfolio and Jack Mohr, Director of Research AAP, recently commented on Stanley Black & Decker in an AAP post. Here is a snippet of what Cramer and Mohr had to say:
While we do not discount the magnitude of the currency headwind, the call confirmed our preliminary belief that underlying trends remain intact (with 1% organic growth, driven by strong pricing).
We believe management screwed up by not adjusting its guidance ahead of the quarter (or at least communicating that the impact would be greater than what they had previously outlined in October), but has washed out expectations for the year through today's guidance.
As a reminder, we lowered our price target to $105 ahead of the quarter and, with shares trading below 15x new 2016 EPS expectations (at the midpoint of guidance), we consider the risk/reward compelling.
-Cramer and Mohr "Stocking Up on Stanley Black & Decker" Originally published on 1/28/2016 on Action Alerts PLUS.
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Separately, TheStreet Ratings has set a "buy" rating and score of A on Stanley Black & Decker stock. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that TheStreet Ratings covers.
The company's strengths can be seen in multiple areas, such as its growth in earnings per share, solid stock price performance, largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. TheStreet Ratings feels its strengths outweigh the fact that the company shows weak operating cash flow.
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.
You can view the full analysis from the report here: SWK