Powered by the do-it-yourself market, Stanley Black & Decker (NYSE:SWK) beat the Street on Friday with a 21% jump in second-quarter profits and reaffirmed its guidance for the rest of the year.
Despite the stronger-than-expected earnings and rosy outlook, shares of the power and hand tool maker inched just slightly higher.
Stanley Black & Decker said it earned $187.1 million, or $1.18 a share, last quarter, compared with a profit of $154.8 million, or 82 cents a share, a year earlier.
Excluding one-time items, it earned $1.21 a share, topping the Street’s view by two pennies.
Revenue rose 12% to $2.87 billion, exceeding consensus calls from analysts for $2.81 billion. Gross margins dipped to 35.1% from 36.2% amid higher costs.
"During the quarter we achieved strong organic growth particularly within CDIY [construction and do-it-yourself] and Industrial, bolstered by excellent growth across the emerging markets,” CEO John Lundgren said in a statement.
Management reiterated its call for 2013 non-GAAP EPS of $5.40 to $5.65 on free cash flow of about $1 billion. That compares favorably with estimates on Wall Street for $5.44.
Despite “significant” currency headwinds, Lundgren predicted stronger second half organic growth performance thanks to rebounding margin rates.
Shares of New Britain, Conn.-based ticked up 0.59% to $83.00 in premarket trading on Friday, putting them on pace to slightly extend their 2013 rally of 11.6%.