Snap-on Inc. ( SNA Quick Quote SNA - Free Report) posted impressive second-quarter 2021 results, wherein both top and bottom lines advanced year over year. Strength in Snap-on Tools Group aided the quarterly results. Also, the company remains on track with its Rapid Continuous Improvement (RCI) process and other cost-reduction initiatives. Shares of this Zacks Rank #3 (Hold) company have gained 32.4% year to date, outperforming the industry's 24.9% growth. Q2 in Detail Snap-on’s adjusted earnings of $3.76 per share in second-quarter 2021 surpassed the Zacks Consensus Estimate of $3.18. Moreover, the figure was up 96.9% and 16.8% from adjusted earnings of $1.91 and $3.22 per share reported in second-quarter 2020 and 2019, respectively. Net sales surged 49.3% to $1,081.4 million and beat the Zacks Consensus Estimate of $964 million. The uptick can be attributed to organic sales growth of 42.7%, a $20.6 million positive impact of foreign currency translations and $19.6 million in contributions from acquisitions. The top line also grew 13.7% from second-quarter 2019’s reported figure of $951.3 million, driven by organic sales growth of 9.3%, gains from acquisitions to the tune of $23 million and $17.2 million of positive impact from foreign currency. Adjusted gross profit was $543.1 million, up 59.2% year over year, while gross margin advanced 310 basis points (bps) to 50.2% in the reported quarter. Further, the company’s adjusted operating earnings before financial services totaled $217.1 million, up 128.3% year over year. Additionally, the metric, as a percentage of sales, expanded 700 bps to 20.1% in the quarter under review. Image Source: Zacks Investment Research Segmental Details Sales in Commercial & Industrial Group increased 33.8% from the prior-year quarter to $350.5 million, driven by organic sales growth of 26.3%, a positive impact of $9.6 million from foreign currency and $7.7 million in gains from acquisitions. The top line also improved 4.6% from $335 million in second-quarter 2019 on the back of organic sales growth of 0.4%, $7.7 million contributions from acquisitions and $6.4 million of favorable foreign currency. The Tools Group segment’s sales rose 49.7% year over year to $484.1 million, driven by organic sales growth of 46.7% and a $6.7 million positive impact of foreign currency. Solid sales performance for both U.S. and international operations aided results. Sales in the segment grew 19.3% from $405.8 million in second-quarter 2019, owing to 17.1% organic sales growth and $7.6 million from favorable currency movement. Sales in Repair Systems & Information Group skyrocketed 62.7% year over year to $398.6 million. Moreover, organic sales in the segment surged 54.1% from the year-ago quarter, with a $6 million positive impact from foreign currency and $11.9 million in gains from acquisitions. Higher sales in OEM dealerships, strength in diagnostics and repair information products to independent repair shop owners and a rise in sales of under-car equipment contributed to segment growth. The top line witnessed growth of 14.2% from second-quarter 2019, driven by organic sales growth of 8.4%, a positive currency impact of $4.7 million and $15.3 million of gains from acquisitions. Also, the Financial Services business reported revenues of $86.9 million, up from $84.6 million in the year-ago quarter. Financials During the quarter, Snap-on’s cash and cash equivalents totaled $965.9 million, with long-term debt of $1,182.5 million and $4,003.4 million in shareholder’s equity. Looking Ahead With the easing of COVID-19 restrictions and reopening of economies, Snap-on remains focused on leveraging capabilities in the automotive repair space and expanding the customer base, particularly in automotive repair and critical industries. As a result, capital expenditures for 2021 are projected to be $90-$100 million, out of which $37.6 million has been incurred in the first six months. 3 Stocks to Consider Gildan Activewear ( GIL Quick Quote GIL - Free Report) has a long-term earnings growth rate of 28.5%. The company flaunts a Zacks Rank #1 (Strong Buy), at present. You can see . the complete list of today’s Zacks #1 Rank stocks here Discovery ( DISCA Quick Quote DISCA - Free Report) currently has an impressive long-term earnings growth rate of 11.2% and a Zacks Rank #2 (Buy). Whirlpool Corp. ( WHR Quick Quote WHR - Free Report) has a Zacks Rank #2 and a long-term earnings growth rate of 7.7%.