Toolmaker Stanley Works ( SWK) rose about 5% in premarket trading Wednesday after it raised first-quarter earnings guidance by more than 25%.

The Connecticut-based company now expects earnings of 63 cents to 67 cents a share, up from its previous range of 49 cents to 51 cents a share and analysts' consensus estimate of 51 cents a share.

The company cited robust demand from home center and other retailers because of improved economic conditions and the continuation of favorable exchange rates for sales in Europe and Asia.

Stanley Works said sales from continuing operations in the first two months of the year were more than 20% higher than a year ago.

The company will provide second-quarter and updated full-year guidance when it releases first-quarter results on April 27.

Shares rose $1.96, or 5.33%, to $38.76.

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