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Factors Likely to Influence Snap-on's (SNA) Q4 Earnings

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Snap-on Inc. (SNA - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 3. The company is expected to report top-line growth when it reports fourth-quarter results.

The Zacks Consensus Estimate for the company’s fourth-quarter earnings is pegged at $3.57 per share, which suggests a decrease of 7% from the year-ago quarter’s reported figure. The consensus mark has also moved down 2.2% in the past 30 days. For fourth-quarter revenues, the consensus mark is pegged at $1.1 billion, which indicates growth of 2.4% from the prior-year quarters’ reported figure.

In the last reported quarter, the company reported an earnings surprise of 6.6%. It delivered an earnings surprise of 17.8%, on average, in the trailing four quarters.

SnapOn Incorporated Price and EPS Surprise

 

SnapOn Incorporated Price and EPS Surprise

SnapOn Incorporated price-eps-surprise | SnapOn Incorporated Quote

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. The company has also been on track with various strategic principles and processes aimed at creating value in areas like Rapid Continuous Improvement (RCI). The RCI process, designed to enhance organizational effectiveness, generate savings and minimize costs, has been aiding sales and margins.

Management has been making efforts to boost customer services and enhance manufacturing and supply-chain capabilities through RCI initiatives and further investments. The impacts of this, along with its product innovation plans, are likely to get reflected in the company’s fourth-quarter results.

Snap-on has been leveraging capabilities in the automotive repair space and expanding the customer base, particularly in the automotive repair and critical industries. Strength in diagnostics and repair information products to independent repair shop owners and managers are anticipated to have contributed to the company’s top-line growth in the quarter under review.

However, Snap-on has been witnessing supply-chain issues and other cost headwinds stemming from new COVID-19 variants. Rising cost inflation due to higher raw material expenses and increased transportation costs are expected to have acted as a deterrent. Unfavorable currency movements are also likely to have had an adverse impact on the fourth-quarter performance.

What the Zacks Model Unveils

Our proven model does not conclusively predict 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. 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 has a Zacks Rank #4 and an Earnings ESP of +3.30%.

Stocks With Favorable Combination

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 this season:

Oxford Industries (OXM - Free Report) has an Earnings ESP of +2.97% and it currently flaunts a Zacks Rank of 1. The company is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2021 results. The Zacks Consensus Estimate for quarterly earnings has moved north by 2.3% to $1.35 per share in the past 30 days, indicating a 938.5% rise from the year-ago quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.

Oxford Industries’ top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $295.3 million, which suggests a rise of 33.4% from the figure reported in the prior-year quarter. OXM has delivered an earnings beat of 96.7%, on average, in the trailing four quarters.

Gildan Activewear (GIL - Free Report) currently has an Earnings ESP of +9.57% and a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports fourth-quarter 2021. The Zacks Consensus Estimate for quarterly earnings moved 3.6% to 58 cents per share, suggesting 28.9% growth from the year-ago quarter’s reported number.

Gildan Activewear’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $731 million, which suggests a rise of 5.9% from the figure reported in the prior-year quarter. GIL has delivered an earnings beat of 85%, on average, in the trailing four quarters.

PVH Corp (PVH - Free Report) currently has an Earnings ESP of +0.20% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2021. The Zacks Consensus Estimate for quarterly earnings has been unchanged at $1.98 per share in the past 30 days, suggesting a surge of 621.1% from the year-ago quarter’s reported number.

PVH Corp’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.39 billion, which suggests a rise of 14.4% from the figure reported in the prior-year quarter. PVH has delivered an earnings beat of 72.3%, on average, in the trailing four quarters

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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