Snap On Inc. Earnings Cheat Sheet: Fifth Straight 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 third quarter. Snap-on 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 Third Quarter

Results: Net income for Snap On Inc. rose to $67.8 million ($1.16 per share) vs. $46.5 million (80 cents per share) in the same quarter a year earlier. This marks a rise of 45.8% from the year earlier quarter.

Revenue: Rose 6.8% to $697.2 million from the year earlier quarter.

Actual vs. Wall St. Expectations: SNA beat the mean analyst estimate of $1.01 per share. It fell short of the average revenue estimate of $720 million.

Quoting Management: We are pleased with our results for the third quarter, which we believe provide further evidence of the progress being made along each of our runways for coherent growth: enhancing the franchise network, expanding in the vehicle repair garage, extending to critical industries and building in emerging markets,” said Nick Pinchuk, Snap-on chairman and chief executive officer. “As testimony to our success in creating positive runway, and to the effectiveness of our Snap-on Value Creation processes, we are honored to have been recognized by Frost & Sullivan’s 2011 survey of U.S. automotive technicians as the overall best brand, by wide margins, in hand tools, diagnostics, tool storage, power tools and pneumatic/air tools.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 72.2% and in the first quarter, the figure rose 52.7%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 8 cents in the second quarter, by 7 cents in the first quarter, and by 5 cents in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 14.4% to $757 million in the second quarter. The figure rose 14% in the first quarter from the year earlier and climbed 15% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: Expectations for the company’s next quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the fourth quarter has risen to $1.18 per share from $1.17. The average estimate for the fiscal year is $4.29 per share, a rise from $4.20 ninety days ago.

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).

Investing Insights: Amazon.com has a Stock Chart Technical Analysts Dream About.

(Source: Xignite Financials)

 

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