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Factors Likely to Decide Snap-on's (SNA) Fate in Q3 Earnings
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Snap-on Incorporated (SNA - Free Report) is likely to register year-over-year growth in the top and the bottom line when it reports third-quarter 2022 results on Oct 20.
The Zacks Consensus Estimate for third-quarter earnings is currently pegged at $3.76 per share, suggesting growth of 5.3% from the year-ago quarter’s reported figure. The consensus mark has been unchanged in the past 30 days. The consensus estimate for quarterly revenues is pegged at $1,070 million, indicating a rise of 3.1% from the year-ago quarter’s actuals.
In the last reported quarter, the company posted an earnings surprise of 9.2%. SNA has a trailing four-quarter earnings surprise of 8.9%, on average.
Snap-on has been gaining from continued positive business momentum and contributions from its Value Creation plan. The company’s growth strategy focuses on three critical areas, enhancing the franchise network, improving relationships with repair shop owners and managers and expanding critical industries in emerging markets.
It has been on track with its Rapid Continuous Improvement process and other cost-reduction initiatives. The RCI process is designed to enhance organizational effectiveness and minimize costs. Management has been boosting customer services and enhancing manufacturing and supply chain capabilities through the RCI initiatives and further investments. All the aforesaid factors should have contributed to the company’s top- and bottom-line performances in the to-be-reported quarter.
However, Snap-on continues to reel under supply-chain headwinds, which is likely to have hurt third-quarter performance. Rising cost inflation, stemming from higher raw material expenses and increased transportation costs, is expected to have been concerning. Unfavorable foreign currency movement might also have acted as a deterrent.
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 (Sell) and an Earnings ESP of 0.00%.
Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
BJ's Wholesale (BJ - Free Report) currently has an Earnings ESP of +0.79% and a Zacks Rank #1. BJ is likely to register top-line growth when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $4.64 billion, suggesting 8.8% growth from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BJ's Wholesale’s fiscal third-quarter earnings is pegged at 79 cents, suggesting a 13.2% decline from 91 cents reported in the year-ago quarter. The consensus mark has moved down by a penny in the past 30 days.
Charter Communications (CHTR - Free Report) currently has an Earnings ESP of +0.63% and a Zacks Rank of 3. The company is expected to register top- and bottom-line growth when it reports third-quarter 2022 numbers. The Zacks Consensus Estimate for CHTR’ quarterly revenues is pegged at $13.89 billion, which suggests growth of 5.6% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Charter Communications quarterly earnings has moved up 0.4% in the past 30 days per share. However, the consensus estimate for earnings suggests 23.1% growth from the year-ago reported number. CHTR has delivered an earnings beat of 19.4%, on average, in the trailing four quarters.
Ralph Lauren (RL - Free Report) currently has an Earnings ESP of +0.08% and a Zacks Rank #3. RL is anticipated to register top-line growth when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.6 billion, indicating an improvement of 3.7% from the figure reported in the prior-year quarter.
However, the Zacks Consensus Estimate for Ralph Lauren’s earnings of $2.07 per share has moved down 1.4% in the past 30 days. The consensus estimate suggests a decline of 21% from 99 cents reported in the year-ago quarter. RL has delivered an earnings beat of 34.9%, on average, in the trailing four quarters.
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Factors Likely to Decide Snap-on's (SNA) Fate in Q3 Earnings
Snap-on Incorporated (SNA - Free Report) is likely to register year-over-year growth in the top and the bottom line when it reports third-quarter 2022 results on Oct 20.
The Zacks Consensus Estimate for third-quarter earnings is currently pegged at $3.76 per share, suggesting growth of 5.3% from the year-ago quarter’s reported figure. The consensus mark has been unchanged in the past 30 days. The consensus estimate for quarterly revenues is pegged at $1,070 million, indicating a rise of 3.1% from the year-ago quarter’s actuals.
In the last reported quarter, the company posted an earnings surprise of 9.2%. SNA has a trailing four-quarter earnings surprise of 8.9%, on average.
SnapOn Incorporated Price and EPS Surprise
SnapOn Incorporated price-eps-surprise | SnapOn Incorporated Quote
Key Factors to Note
Snap-on has been gaining from continued positive business momentum and contributions from its Value Creation plan. The company’s growth strategy focuses on three critical areas, enhancing the franchise network, improving relationships with repair shop owners and managers and expanding critical industries in emerging markets.
It has been on track with its Rapid Continuous Improvement process and other cost-reduction initiatives. The RCI process is designed to enhance organizational effectiveness and minimize costs. Management has been boosting customer services and enhancing manufacturing and supply chain capabilities through the RCI initiatives and further investments. All the aforesaid factors should have contributed to the company’s top- and bottom-line performances in the to-be-reported quarter.
However, Snap-on continues to reel under supply-chain headwinds, which is likely to have hurt third-quarter performance. Rising cost inflation, stemming from higher raw material expenses and increased transportation costs, is expected to have been concerning. Unfavorable foreign currency movement might also have acted as a deterrent.
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 (Sell) and an Earnings ESP of 0.00%.
Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
BJ's Wholesale (BJ - Free Report) currently has an Earnings ESP of +0.79% and a Zacks Rank #1. BJ is likely to register top-line growth when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $4.64 billion, suggesting 8.8% growth from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BJ's Wholesale’s fiscal third-quarter earnings is pegged at 79 cents, suggesting a 13.2% decline from 91 cents reported in the year-ago quarter. The consensus mark has moved down by a penny in the past 30 days.
Charter Communications (CHTR - Free Report) currently has an Earnings ESP of +0.63% and a Zacks Rank of 3. The company is expected to register top- and bottom-line growth when it reports third-quarter 2022 numbers. The Zacks Consensus Estimate for CHTR’ quarterly revenues is pegged at $13.89 billion, which suggests growth of 5.6% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Charter Communications quarterly earnings has moved up 0.4% in the past 30 days per share. However, the consensus estimate for earnings suggests 23.1% growth from the year-ago reported number. CHTR has delivered an earnings beat of 19.4%, on average, in the trailing four quarters.
Ralph Lauren (RL - Free Report) currently has an Earnings ESP of +0.08% and a Zacks Rank #3. RL is anticipated to register top-line growth when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.6 billion, indicating an improvement of 3.7% from the figure reported in the prior-year quarter.
However, the Zacks Consensus Estimate for Ralph Lauren’s earnings of $2.07 per share has moved down 1.4% in the past 30 days. The consensus estimate suggests a decline of 21% from 99 cents reported in the year-ago quarter. RL has delivered an earnings beat of 34.9%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.