Publications
Publications
- February 2025
- HBS Case Collection
Managing EPS at Stanley Black & Decker?
Abstract
The case explores Stanley Black and Decker’s (SBD) 2022 financial restatement announcement, which related to how SBD accounted for certain equity issuances in 2019. These transactions had a minimal effect on earnings but significantly reduced shares outstanding, and thus increased earnings per share (EPS). The case provides a comprehensive review of stockholders’ equity accounts and EPS, one of the most ubiquitous metrics in capital markets. The case also illustrates some of the incentive conflicts that companies face when managing EPS, especially when market participants (e.g., analysts) fixate on EPS and compensation agreements are structured around EPS.
Keywords
Accounting; Financial Reporting; Ethics; Finance; Accounting Industry; Construction Industry; Manufacturing Industry
Citation
Heese, Jonas, Joseph Pacelli, Yuan Zou, and James Barnett. "Managing EPS at Stanley Black & Decker?" Harvard Business School Case 125-016, February 2025.