Snap On Inc. Earnings: Double-Digit Growth Continues

S&P 500 (NYSE:SPY) component Snap On Inc. (NYSE:SNA) reported net income above Wall Street’s expectations for the fourth 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 Fourth Quarter

Results: Net income for Snap On Inc. rose to $74.3 million ($1.27 per share) vs. $57.9 million (99 cents per share) in the same quarter a year earlier. This marks a rise of 28.3% from the year earlier quarter.

Revenue: Rose 5.7% to $736.6 million from the year earlier quarter.

Actual vs. Wall St. Expectations: Snap On Inc. beat the mean analyst estimate of $1.17 per share. Analysts were expecting revenue of $750.3 million.

Quoting Management: “Our fourth quarter results extend our ongoing trend of year-over-year increases in sales and earnings,” said Nick Pinchuk, Snap-on chairman and chief executive officer. “We believe they once again offer clear testimony to the continued advancements we’re making along our defined runways for coherent growth, which are those strategic areas of importance we have identified as being decisive to our future: enhancing the franchise network, expanding in the vehicle repair garage, extending into critical industries, and building in emerging markets. We further believe our fourth quarter and full year 2011 performance underscores our commitment to the Snap-on Value Creation Processes, which has enabled us to further navigate our runways for improvement in the crucial areas of safety, quality, customer connection, innovation and rapid continuous improvement (NYSE:RCI) and has fueled our ongoing trend of increasing profitability.”

Key Stats:
The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 45.8% and in the second quarter, the figure rose 72.2%.

The company has now topped analyst estimates for the last four quarters.  It beat the mark by 15 cents in the third quarter, by 8 cents in the second quarter, and by 7 cents in the first quarter.
Looking Forward: The average estimate for the first quarter of the next fiscal year remains unchanged at $1.14 a share. The average estimate hasn’t changed from $4.42 per share for the fiscal year.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com