Snap-on Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Snap-on Incorporated (NYSE:SNA) will unveil its latest earnings on Thursday, July 19, 2012. Snap-on is a global innovator, manufacturer and marketer of tools, diagnostics, equipment, software and service solutions.

Snap-on Incorporated Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of $1.20 per share, a rise of 5.3% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.25. Between one and three months ago, the average estimate moved down. It also has dropped from $1.23 during the last month. Analysts are projecting profit to rise by 11.3% compared to last year’s $5.03.

Past Earnings Performance: Last quarter, the company beat estimates by 5 cents, coming in at net income of $1.21 a share versus the estimate of profit of $1.16 a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the first quarter, profit rose 26.3% to $71 million ($1.21 a share) from $56.2 million (96 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 6% to $735.2 million from $693.7 million.

Wall St. Revenue Expectations: Analysts predict a rise of 5.7% in revenue from the year-earlier quarter to $767.8 million.

Stock Price Performance: Between April 18, 2012 and July 13, 2012, the stock price rose $1.56 (2.6%), from $59.65 to $61.21. The stock price saw one of its best stretches over the last year between January 30, 2012 and February 13, 2012, when shares rose for 11 straight days, increasing 10.6% (+$5.98) over that span. It saw one of its worst periods between July 20, 2011 and August 2, 2011 when shares fell for 10 straight days, dropping 12.6% (-$7.88) over that span.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 45.8% in the third quarter of the last fiscal year and 28.3% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 12.2% in the second quarter of the last fiscal year, 4% in the third quarter of the last fiscal year and 12.3% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

Analyst Ratings: With three analysts rating the stock a buy, none rating it a sell and one rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.71 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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