Snap-on Earnings: Here’s Why Investors are Excited Now
Snap-on Inc. (NYSE:SNA) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 1.79%.
Snap-on Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 15.38% to $1.50 in the quarter versus EPS of $1.30 in the year-earlier quarter.
Revenue: Rose 3.55% to $764.1 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Snap-on Inc. reported adjusted EPS income of $1.50 per share. By that measure, the company beat the mean analyst estimate of $1.45. It beat the average revenue estimate of $758.08 million.
Quoting Management: “We believe our performance in the second quarter reaffirms Snap-on’s strengths in serving serious professionals performing critical repairs around the world every day,” said Nick Pinchuk, Snap-on chairman and chief executive officer. “Again this quarter, we achieved higher year-over-year sales and increased operating income in spite of ongoing headwinds in specific parts of our business, and we continued to progress in those strategic areas of importance that we’ve identified as being decisive to our future. For example, our recent acquisition of Challenger Lifts in the second quarter broadens our established capabilities and furthers our advancement along the growth runway of expanding with repair shop owners and managers. Finally, I thank our franchisees and associates worldwide for their significant dedication and contributions, without which these results would not have been possible.”
Key Stats (on next page)…
Revenue increased 3.02% from $741.7 million in the previous quarter. EPS increased 7.14% from $1.40 in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.37 and has not changed. For the current year, the average estimate is a profit of $5.67, which is the same with that ninety days ago.
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