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Snap-on (SNA) to Report Q1 Earnings: What's in the Cards?

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Snap-on Inc. (SNA - Free Report) is scheduled to report first-quarter 2021 results on Apr 22. This global provider of professional tools, equipment and related solutions is likely to have witnessed revenue and earnings growth in the to-be-reported quarter.

The Zacks Consensus Estimate for the company’s first-quarter earnings is pegged at $3.01 per share, which suggests an increase of 15.8% from the year-ago quarter’s reported figure. However, the consensus mark has moved up a penny in the past seven days. For first-quarter revenues, the consensus mark is pegged at $927.1 million, which indicates growth of 8.8% from the prior-year quarters’ reported figure.

In the last reported quarter, the company delivered an earnings surprise of 30.2%. The company delivered an earnings surprise of 18.8%, on average, in the trailing four quarters.

SnapOn Incorporated Price and EPS Surprise

Key Factors to Note

Snap-on has been gaining from its Value Creation model, which focuses on enhancing the franchise network, improving relationships with repair shop owners and managers, and expanding critical industries in emerging markets. Moreover, the company’s Rapid Continuous Improvement (RCI) process, designed to enhance organizational effectiveness, generate savings and minimize costs, has been aiding margins. Encouragingly, management has been making efforts to boost customer services along with enhancing manufacturing and supply-chain capabilities through RCI initiatives and further investments. Gains from these endeavors are likely to be reflected in the company’s first-quarter results.

Further, a solid performance in OEM dealerships and strength in diagnostics and repair information products to independent repair shop owners and managers are likely to have contributed to the company’s top line in the quarter under review. Apart from these, increased investments in product innovation and enhanced brand awareness across the world bode well.

However, Snap-on has been reeling under unfavorable currency movements. Also, direct costs, including direct labor, temporary factory closures, wages for quarantined associates, event cancellation fees and health and safety-related expenses stemming from the COVID-19 crisis, remain a concern.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Snap-on this 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Snap-on has a Zacks Rank #2 and an Earnings ESP of +5.00%.

Other Stocks Poised to Beat Earnings Estimates

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

Central Garden & Pet Company (CENT - Free Report) currently has an Earnings ESP of +3.96% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Whirlpool Corporation (WHR - Free Report) currently has an Earnings ESP of +1.39% and a Zacks Rank #2.

World Wrestling Entertainment, Inc. (WWE - Free Report) has an Earnings ESP of +11.11% and a Zacks Rank #2, at present.

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