Headquartered in Kenosha, WI, Snap-on Incorporated (SNA – Free Report) is a global provider of 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 a decent earnings track record, and has delivered an average positive earnings surprise of 2.1% 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 2018 earnings report which has just released.
We have highlighted some of the key details from the just-released announcement below:
Earnings: SNA beat on earnings. Net earnings came in at $2.79 per share, higher than the Zacks Consensus Estimate of $2.73.
Revenue: Net sales of $935.5 million beat the Zacks Consensus Estimate of $931 million marginally.
Key Stats: Despite a challenging macroeconomic environment, SNA witnessed a 16.7% year over year rise in earnings and steady sales expansion on the back of solid contribution from acquisitions. Going forward, the company expects its value-creation processes will lead to improvements in safety, quality of service, customer satisfaction and innovation.
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