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Snap-on (SNA) to Report Q4 Earnings: What's in the Offing?
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Snap-on Incorporated (SNA - Free Report) is slated to release fourth-quarter 2023 results on Feb 8, before market open. The company is likely to record top and bottom-line growth when it posts fourth-quarter results.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $4.63 per share, indicating growth of 4.8% from the year-ago quarter’s reported figure. The consensus mark has remained unchanged in the past 30 days. The consensus estimate for quarterly revenues is pegged at $1.20 billion, indicating a rise of 4.2% from the year-ago quarter’s actual.
In the last reported quarter, the company posted an earnings surprise of 2.7%. SNA has a trailing four-quarter earnings surprise of 7.5%, on average.
Key Factors to Note
Snap-on has been focused on growth strategies, including enhancing the franchise network, improving relationships with repair shop owners and managers, and expanding into critical industries in emerging markets. The company's emphasis on its Rapid Continuous Improvement (RCI) process has been aimed at enhancing organizational effectiveness, reducing costs, and boosting sales and margins. Savings from the RCI initiative come from continuous productivity and process improvement plans. The company has also been investing in new products and increasing brand awareness globally.
Our model estimates sales growth of 6.2% for Commercial & Industrial Group, 2.2% for Snap-on Tools Group, and 3.1% for Repair Systems & Information Group in the fourth quarter. We expect year-over-year consolidated organic revenue growth of 3.9% for the quarter under review, driven by a 7.2% rise in Commercial & Industrial Group, 2.1% growth in Snap-on Tools Group, and 2.1% jump in Repair Systems & Information Group.
However, Snap-on has been witnessing ongoing challenges due to macroeconomic headwinds. The company has been grappling with the impacts of rising cost inflation, primarily driven by increased raw material expenses and other related costs. These factors are likely to have somewhat hurt the company's profitability in the to-be-reported quarter. We expect the company’s operating expenses to increase 4.3% year over year to $326.1 million for the fourth quarter.
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. However, that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Here are some companies, which according to our model, have the right combination of elements to post an earnings beat this reporting cycle.
Hasbro (HAS - Free Report) currently has an Earnings ESP of +4.48% and a Zacks Rank of 2. HAS is likely to have registered a top and bottom-line decline when it reports fourth-quarter 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.4 billion, indicating a 19.7% decline from the figure reported in the prior-year quarter.
The consensus estimate for Hasbro’s fourth-quarter earnings is pegged at 64 cents per share, implying a year-over-year decrease of 51.2%. The consensus mark has remained unchanged in the past 30 days.
lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +0.38% and a Zacks Rank of 2. LULU is likely to have registered top and bottom-line growth when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.2 billion, implying 15% growth from the figure reported in the prior-year quarter.
The consensus estimate for LULU’s fourth-quarter earnings is pegged at $4.99 per share, up 13.4% from the year-ago quarter's level. The consensus mark has risen a penny in the past seven days.
NIKE (NKE - Free Report) currently has an Earnings ESP of +1.03% and a Zacks Rank of 3. NKE is likely to have registered a top and bottom-line decline when it reports third-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $12.4 billion, indicating a 0.3% decline from the figure reported in the prior-year quarter.
The consensus estimate for NIKE’s third-quarter earnings is pegged at 71 cents per share, indicating a 10.1% decline from the year-ago quarter's level. The consensus mark has moved down 3 cents in the past 30 days.
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Snap-on (SNA) to Report Q4 Earnings: What's in the Offing?
Snap-on Incorporated (SNA - Free Report) is slated to release fourth-quarter 2023 results on Feb 8, before market open. The company is likely to record top and bottom-line growth when it posts fourth-quarter results.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $4.63 per share, indicating growth of 4.8% from the year-ago quarter’s reported figure. The consensus mark has remained unchanged in the past 30 days. The consensus estimate for quarterly revenues is pegged at $1.20 billion, indicating a rise of 4.2% from the year-ago quarter’s actual.
In the last reported quarter, the company posted an earnings surprise of 2.7%. SNA has a trailing four-quarter earnings surprise of 7.5%, on average.
Key Factors to Note
Snap-on has been focused on growth strategies, including enhancing the franchise network, improving relationships with repair shop owners and managers, and expanding into critical industries in emerging markets. The company's emphasis on its Rapid Continuous Improvement (RCI) process has been aimed at enhancing organizational effectiveness, reducing costs, and boosting sales and margins. Savings from the RCI initiative come from continuous productivity and process improvement plans. The company has also been investing in new products and increasing brand awareness globally.
Our model estimates sales growth of 6.2% for Commercial & Industrial Group, 2.2% for Snap-on Tools Group, and 3.1% for Repair Systems & Information Group in the fourth quarter. We expect year-over-year consolidated organic revenue growth of 3.9% for the quarter under review, driven by a 7.2% rise in Commercial & Industrial Group, 2.1% growth in Snap-on Tools Group, and 2.1% jump in Repair Systems & Information Group.
However, Snap-on has been witnessing ongoing challenges due to macroeconomic headwinds. The company has been grappling with the impacts of rising cost inflation, primarily driven by increased raw material expenses and other related costs. These factors are likely to have somewhat hurt the company's profitability in the to-be-reported quarter. We expect the company’s operating expenses to increase 4.3% year over year to $326.1 million for the fourth quarter.
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. However, that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Snap-On Incorporated Price and EPS Surprise
Snap-On Incorporated price-eps-surprise | Snap-On Incorporated Quote
Snap-on has an Earnings ESP of 0.00% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Poised to Beat Earnings Estimates
Here are some companies, which according to our model, have the right combination of elements to post an earnings beat this reporting cycle.
Hasbro (HAS - Free Report) currently has an Earnings ESP of +4.48% and a Zacks Rank of 2. HAS is likely to have registered a top and bottom-line decline when it reports fourth-quarter 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.4 billion, indicating a 19.7% decline from the figure reported in the prior-year quarter.
The consensus estimate for Hasbro’s fourth-quarter earnings is pegged at 64 cents per share, implying a year-over-year decrease of 51.2%. The consensus mark has remained unchanged in the past 30 days.
lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +0.38% and a Zacks Rank of 2. LULU is likely to have registered top and bottom-line growth when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.2 billion, implying 15% growth from the figure reported in the prior-year quarter.
The consensus estimate for LULU’s fourth-quarter earnings is pegged at $4.99 per share, up 13.4% from the year-ago quarter's level. The consensus mark has risen a penny in the past seven days.
NIKE (NKE - Free Report) currently has an Earnings ESP of +1.03% and a Zacks Rank of 3. NKE is likely to have registered a top and bottom-line decline when it reports third-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $12.4 billion, indicating a 0.3% decline from the figure reported in the prior-year quarter.
The consensus estimate for NIKE’s third-quarter earnings is pegged at 71 cents per share, indicating a 10.1% decline from the year-ago quarter's level. The consensus mark has moved down 3 cents in the past 30 days.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.