Stanley Black & Decker, Inc.
) recently issued junior subordinated debentures worth $750
million; maturing on July 25, 2052. The issue was offered at $25
per debentures or 100% of principal amount.
The debentures carry a coupon rate of 5.75% to be paid quarterly
by the company, with the first installment accruing on September
15, 2012. The debentures carry a Baa2 rating from Moody's, BBB+
from S&P and BBB from Fitch.
In the recently reported second quarter 2012 results, the
company reported a 0.6% sequential increase in its long-term debt
balance (net of current portions) which settled at approximately
$2.9 billion. Net interest expense in the quarter rose 20.5% to
Also, the quarter's earnings per share from continuing
operations came in at $1.32, down 9.6% from $1.46 reported in the
year-ago quarter. GAAP EPS including 40 cents of merger related
charges was 92 cents compared with $1.14 in the second quarter of
2011. Net revenue increased 8.1% year over year to roughly $2.8
billion, due primarily to a 1% unit volume improvement, a 1%
positive price impact and 10% positive impact from acquisitions.
These were, however, offset by a 4% negative currency translation
The current Zacks Consensus Estimate for the third quarter of
2012 is $1.60, representing a year-over-year increase of 19.48%.
Estimates for the fiscal years 2012 and 2013 are $5.60 and $6.55,
reflecting annual growth of 6.87% and 16.93%, respectively.
Stanley Black & Decker manufactures tools and engineered
security solutions across the globe. Prime competitors of the
Danaher Corp. (
Makita Corp. (
Snap-on Inc. (
We currently maintain a Neutral recommendation on Stanley Black
& Decker. The stock also bears a Zacks #5 (Strong Sell)
DANAHER CORP (DHR): Free Stock Analysis Report
(MKTAY): ETF Research Reports
SNAP-ON INC (SNA): Free Stock Analysis Report
STANLEY B&D INC (SWK): Free Stock Analysis
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