Back to top

Image: Bigstock

Factors Likely to Decide Snap-on's (SNA) Fate in Q3 Earnings

Read MoreHide Full Article

Snap-on Inc. (SNA - Free Report) is scheduled to report third-quarter 2020 results on Oct 22. In the last reported quarter, this global provider of professional tools, equipment and related solutions delivered a negative earnings surprise of 1.6%. The company has delivered a negative earnings surprise of 1.5%, on average, in the trailing four quarters.

The consensus mark for the company’s third-quarter earnings is pegged at $2.17 per share, which suggests a decline of 26.7% from the year-ago quarter’s reported figure. However, the consensus mark remained stable in the past 30 days. For third-quarter revenues, the consensus mark is pegged at $804.4 million, which indicates a 10.8% decrease from the prior-year quarters’ reported figure.

What’s Hurting the Stock?

Snap-on is reeling under the ongoing tough economic environment stemming from the uncertain COVID-19 situation. Owing to this, it has been witnessing sluggish sales across all geographies. Further, the adverse impact from foreign currency translations remains a drag. In fact, management noted in its last earnings call that currency woes are likely to have persisted in the third quarter.

However, the company is making efforts, including cost-cutting initiatives and the Rapid Continuous Improvement (RCI) plan, to combat the uncertain COVID-19 impacts. Notably, its robust business model and focus on value-creation processes have been aiding the company’s earnings. Moreover, this RCI program, designed to enhance organizational effectiveness and efficiency and generate savings, has been aiding margins. Such endeavors are likely to have provided some cushion to the company’s third-quarter performance.

SnapOn Incorporated Price and EPS Surprise

 

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Snap-onthis time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Snap-on carries a Zacks Rank #5 (Strong Sell) and an Earnings ESP of -2.54%.

Stocks Poised to Beat Earnings Estimates

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.

Crocs (CROX - Free Report) currently has an Earnings ESP of +2.56% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Deckers Outdoor Corporation (DECK - Free Report) has an Earnings ESP of +0.95% and a Zacks Rank #2, at present.

Ralph Lauren Corporation (RL - Free Report) currently has an Earnings ESP of +6.22% and a Zacks Rank #2.

Zacks’ Single Best Pick to Double

From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, SherazMian hand-picks one to have the most explosive upside of all.

With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.

The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.

Click Here, See It Free >>

Published in