Hand tools maker The Stanley Works (SWK) on Thursday lowered its full-year outlook, citing charges stemming from its recently-announced acquisition of Black & Decker (BDK).
The New Britain, Connecticut-based company says its now expects a full-year 2009 profit of $2.61 to $2.71 per share, down from prior guidance for $2.84 to $2.94 per share.
Stanley said it expects to record an $18 million charge in the fourth quarter stemming from the BDK acquisition, which was announced on Monday.
Stanley Works shares are falling 0.95%, in premarket trading Friday.
The Bottom Line
We have avoided shares of SWK since our early June coverage began last year, when the stock was trading at 47.44. The company has a 2.66% dividend yield, based on last night’s closing stock price of $49.62. The stock has technical support in the $42 price area. If the shares can firm up, we see overhead resistance around the $50-$53 price levels. We would remain on the sidelines for now.
The Stanley Works (SWK) is not recommended at this time, holding a Dividend.com DARS Rating of 3.4 out of 5 stars.
