Stanley Black & Decker Inc. SWK, +3.32% said Friday it is adjusting earnings per share from its recently announced third-quarter earnings and its full-year guidance after receiving a comment letter from the Securities and Exchange Commission regarding its accounting. “The change will include shares underlying the forward stock purchase contracts in the denominator of its diluted earnings per share calculation utilizing the if-converted method, which represents a correction of an error of the previously applied treasury stock method,” the company said in a regulatory filing. The new calculation will change third-quarter EPS to $2.51 from the $2.56 reported. Excluding acquisition-related and other charges of 20 cents a share, its adjusted EPS would have been $2.71, compared with the $2.77 it reported. “The company does not believe that this change has a material effect on its historical financial statements,” said the filing. The tool maker adjusted its full-year guidance to reflect the change to a range of $10.00 to $10.25 from a prior $10.20 to $10.45, and tweaked its adjusted full-year guidance to a range of $10.70 to $10.90 from a prior $10.90 to $11.10. Shares were not yet active premarket, but have gained 6.6% in the year to date, while the S&P 500 SPX, +0.72% has gained 24%.
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