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Snap-On (SNA) Q1 Earnings & Revenues Beat Estimates

Zacks

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

Snap-On Incorporated Price, Consensus and EPS Surprise | Snap-On Incorporated Quote

Currently, SNA has a Zacks Rank #4 (Sell), but that could change following its first-quarter 2017 earnings report which has just released. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

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!

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