Snap On Inc. Earnings Cheat Sheet: Fifth Consecutive Quarter of Double-Digit Growth

S&P 500 (NYSE:SPY) component Snap On Inc. (NYSE:SNA) reported net income above Wall Street’s expectations for the second quarter. Snap-on Inc. is a global innovator, manufacturer and marketer of tools, diagnostics, equipment, software and service solutions.

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Snap On Earnings Cheat Sheet for the Second Quarter

Results: Net income for Snap On Inc. rose to $78 million ($1.33 per share) vs. $45.3 million (78 cents per share) in the same quarter a year earlier. This marks a rise of 72.2% from the year earlier quarter.

Revenue: Rose 14.4% to $757 million from the year earlier quarter.

Actual vs. Wall St. Expectations: SNA reported adjusted net income of $1.14 per share. By that measure, the company beat the mean estimate of $1.06 per share. It beat the average revenue estimate of $725.9 million.

Quoting Management: “We are pleased with our financial results for the second quarter, which we believe further illustrate the strength of Snap-on’s value proposition to professional users performing critical tasks,” said Nick Pinchuk, Snap-on chairman and chief executive officer. “As evidenced by the sales increases in the quarter, we continue to make substantial progress on our runways for coherent growth, and the improvement in our year-over-year operating income margin provides further testament to the power of Snap-on’s Value Creation Processes. As always, I thank our franchisees and associates worldwide for their ongoing dedication and contributions.”

Key Stats:

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded three percentage points to 49.2% from the year earlier quarter. Over that span, margins have grown on average 1.8 percentage points per quarter on a year-over-year basis.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 52.7% and in the fourth quarter of the last fiscal year, the figure rose 58.2%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 7 cents in the first quarter, by 5 cents in the fourth quarter of the last fiscal year, and by 15 cents in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 14% to $719.5 million in the first quarter. The figure rose 15% in the fourth quarter of the last fiscal year from the year earlier and climbed 14% in the third quarter of the last fiscal year from the year-ago quarter.

Competitors to Watch: The L.S. Starrett Company (NYSE:SCX), Stanley Black & Decker, Inc. (NYSE:SWK), The Home Depot, Inc. (NYSE:HD), Lowe’s (NYSE:LOW) and P & F Industries, Inc. (NASDAQ:PFIN).

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(Source: Xignite Financials)

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