After double digit revenue and profit declines, it’s good to see Black & Decker (BDK) raising its guidance.
The power tools company now expects third quarter earnings per share of $0.91 from $0.45 previously. While $0.14 if this upgrade came from tax effects, the remainder still represents a substantial jump in outlook.
What’s happened is that sales for the company’s power tools have tracked better than expected. Margins have also expanded due to cost reductions and cost deflation.
Any rebound in power tools is decent news for housing.