UPDATE 1-Black & Decker Q3 profit tops Street, sees better Q4

* Q3 EPS $0.91 vs est $0.82/shr

* Q3 rev down 23 pct

* Sees Q4 profit above Street view

* Shares up about 2 pct in pre-market

Oct 22 (Reuters) - Tool maker Black & Decker Corp BDK.N posted a 35 percent drop in third-quarter profit on lower sales, but beat market estimates as it cut costs, and forecast fourth-quarter earnings above market estimates.

"Looking ahead, we are anticipating continued stabilization of demand, but not a near-term rebound," the company said in a statement.

For the fourth-quarter ending Dec, the company expects to earn between 68 cents and 78 cents a share, with sales similar to third-quarter levels.

Analysts on average expect a profit of 45 cents a share, on revenue view of $1.18 billion, according to Thomson Reuters I/B/E/S.

For the third quarter ended Sept 30, Black and Decker reported net income of $55.4 million, or 91 cents a share, compared with $85.8 million, or $1.41 a share a year earlier.

Sales declined 23 percent to $1.2 billion.

Analysts on average were expecting the company to earn 82 cents a share, on revenue view of $1.19 billion, according to Thomson Reuters I/B/E/S.

Selling, general and administrative expenses dropped 17 percent to $309.6 million for the quarter.

Shares of the company were trading up as much as 2 percent at $49.76 pre-market Wednesday on the New York Stock Exchange.

(Reporting by Biswarup Gooptu in Bangalore; Editing by Kavita Chandran)