Snap-on Incorporated Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Snap-on Incorporated (NYSE:SNA) will unveil its latest earnings on Thursday, October 18, 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 estimate of analysts is for profit of $1.23 per share, a rise of 6% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 12.8% compared to last year’s $5.10.

Past Earnings Performance: Last quarter, the company beat estimates by 10 cents, coming in at net income of $1.30 a share versus the estimate of profit of $1.20 a share. It marked the fourth straight quarter of beating estimates.

Are you well-positioned with a winning post-election portfolio?: Check out our newest CHEAT SHEET stock picks now>>

Stock Price Performance: Between July 19, 2012 and October 12, 2012, the stock price rose $4.04 (6%), from $67.24 to $71.28. 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 November 14, 2011 and November 25, 2011 when shares fell for nine straight days, dropping 14% (-$7.84) over that span.

A Look Back: In the second quarter, profit fell 2.1% to $76.4 million ($1.30 a share) from $78 million ($1.33 a share) the year earlier, but exceeded analyst expectations. Revenue rose 1.5% to $737.9 million from $726.7 million.

Analyst Ratings: With two analysts rating the stock as a buy, none rating it as a sell and two rating it as a hold, there are indications of a bullish outlook.

Key Stats:

After last quarter’s profit drop broke a string of income increases, this earnings announcement is definitely a chance for a rebound. Net income rose 45.8% in the third quarter of the last fiscal year, 28.3% in the fourth quarter of the last fiscal year and 26.3% in the first quarter before declining in the second quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 4% in the third quarter of the last fiscal year, 12.3% in the fourth quarter of the last fiscal year and 6% in the first quarter before increasing again in the second quarter.

Wall St. Revenue Expectations: Analysts predict a rise of 1.3% in revenue from the year-earlier quarter to $706.6 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.61 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. The company regressed in this liquidity measure from 2.71 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 5.3% to $596.1 million while assets rose 1.3% to $1.55 billion.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

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

Don’t Miss These Additional Hot Stories:

Bank of America Third Quarter Earnings Sneak Peek

Is This Giant Drug Stock a Buy, Hold or Sell Today?

Here’s Why Starbucks Moves Like a Tech Stock