Headquartered in Kenosha, WI, Snap-on Incorporated SNA is a global provider of professional tools, equipment, and related solutions for technicians, vehicle service centers, original equipment manufacturers and other industrial users. The company divides its operations in four segments: Snap-on Tools Group, Commercial & Industrial Group, Repair Systems & Information Group and Financial Services segment.
Snap-on’s overarching business model, which aims to maximize value-creation by focusing on areas like safety, quality of service, customer satisfaction and innovation, has emerged as a tried and tested growth driver. In this regard, the rapid improvement process, designed to improve organizational efficiency and slash costs, including working capital requirements, has helped Snap-on improve sales, margins and savings over the past few quarters.
Despite these positives, ongoing softness in industrial markets has significantly affected client spending, marring the company’s prospects. Also, sluggish oil and gas market pose as concerns for the company.
However, SNA has an outstanding earnings track record, and has delivered an average positive earnings surprise of 4% in the last four trailing quarters, beating estimates all through.
Snap-On Incorporated Price, Consensus and EPS Surprise
We have highlighted some of the key details from the just-released announcement below:
Earnings: SNA beat on earnings. Net earnings came in at $2.39 per share, higher than the Zacks Consensus Estimate of $2.34.
Revenue: Net sales of $887.1 million topped the Zacks Consensus Estimate of $876.9 million.
Key Stats: Despite a challenging macroeconomic environment, SNA witnessed a 10.6% rise in earnings per share. Going forward, the company expects its value-creation processes will lead to improvements in safety, quality of service, customer satisfaction and innovation.
Stock Price: SNA shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on this SNA earnings report later!
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Zacks Investment Research