Stanley Black & Decker’s (SWK) third-quarter profit leapt 44% on higher industrial and construction revenue, while the tool maker took a hacksaw to its full-year outlook.
The company slashed its guidance to earnings of $4.90 to $5 a share for the current year, down from $5.40 to $5.65, due in part to the impact of the partial government shutdown on organic growth. It also cited slower-than-expected margin growth in its security segment and weaker growth in emerging markets.
Shares slid 14% to $76.94 in early morning trading Wednesday.
The New Britain, Conn., company logged a profit of $166 million, or $1.04 a share, surpassing a year-ago profit of $115.2 million, or 69 cents a share. Adjusted per-share earnings, which exclude one-time charges, were $1.39 in the latest quarter.
Sales climbed 9.6% to $2.76 billion.
Analysts were looking for per-share earnings of $1.38 and revenue of $2.82 billion.
Stanley Black & Decker has recently benefited from a rebound in the housing market, seeing higher demand for its construction and do-it-yourself products. Overall, acquisitions have contributed to total sales growth.
In the latest period, the construction and do-it-yourself segment recorded sales growth of 5.5% to $1.39 billion. Sales in the security segment, which includes electronic security systems, were up 2.9%. Industrial segment revenue jumped 25%.
President and Chief Operating Officer James Loree said the company is encouraged by organic growth in most of its businesses as a result of “substantial growth investments,” despite a “slower macro backdrop.”