Toolmaker Stanley Black & Decker (SWK -2.74%) beat earnings expectations for the first quarter, but revenue was light and the company sees rising cost pressures due to tariffs, according to its quarterly report from this morning. Investors viewed the glass as half-empty, sending shares of Stanley down as much as 5% for the day and down 3% heading into market close.

Tariff impact beginning to show

Stanley Black & Decker is one of the largest manufactures of tools and outdoor equipment products. The company earned $0.75 per share in the quarter, better than the $0.66 per-share consensus estimate. But revenue of $3.7 billion was down 3% year over year on currency headwinds and business divestitures.

Sales of tools, the company's largest segment, were flat, but fastener sales fell by 21% on divestitures and weakness in the automotive sector. Stanley also said it expects full-year earnings per share to come in at around $4.50, significantly below Wall Street's $4.91 consensus.

The company said it is on track to meet the goals of its long-term $2 billion cost-savings plan, including $500 million expected to be achieved in 2025. It will need it, as Stanley Black & Decker also said it is adjusting pricing and supply chains due to tariff concerns.

"In light of the current environment, we are accelerating adjustments to our supply chain and exploring all options as we seek to minimize the impact of tariffs on end users while balancing the need to protect our business and our ability to innovate for years to come," CEO Donald Allan Jr. said in a statement. "With that in mind, we implemented an initial price increase in April and notified our customers that further price action is required."

Is Stanley Black & Decker a buy?

Given the macro uncertainty, it is hard to know if Stanley's efforts will be enough. Allan said the company is "continuing to closely monitor shifting tariff policies ... with an aim of being agile and responsive."

Shares of Stanley Black & Decker have lost 35% of their value over the past year, and the company now offers investors a 5% dividend yield. This business should have what it takes to survive and thrive over time, but for now there is every reason to worry things will get worse before they get better.