Black & Decker (BDK) shares are hopping this morning, up $3.76, or 8%, at $51, after the company said it will make more than twice what analysts were estimating in profit per share thanks to a milder-than-expected sales decline in the September quarter.
Black & Decker raised its Q3 forecast to 91 cents a share, up from a prior range of 35 cents to 45 cents, on a sales decline of 23%, which is better than the forecast offered back in July, when the company expected sales to decline similar to the 27% drop in the second quarter. The result, $1.18 billion, would be a hair above analysts’ estimates. Sounds like some pretty good leverage on the profit side. The company said it had an operating margin of 7.5% in the quarter, well up from the Q2′s 5.9%.
Black and Decker reports full results on Oct. 22, at which time the company plans to update its full-year forecast.
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