Back to top

Image: Bigstock

Snap-on (SNA) Beats Q2 Earnings, Revenues Miss

Read MoreHide Full Article

Headquartered in Kenosha, WI, Snap-on Incorporated (SNA - Free Report) is a global provider of professional tools, equipment, and related solutions for technicians, vehicle service centers, original equipment manufacturers and other industrial users. The company divides its operations in four segments: Snap-on Tools Group, Commercial & Industrial Group, Repair Systems & Information Group and Financial Services segment.

Snap-on’s Repair Systems & Information segment has been gaining traction on the back of factors like rising penetration in emerging markets, continued software and hardware upgrades, productivity enhancements. In this segment, undercar equipment is an important, high visibility and high-value product line for the company and has been a major revenue driver since the past quarters.

However, strengthening of U.S. Dollar and macroeconomic turbulences continue to bother the company’s financials. Around one-third of the company’s revenues are derived from its European businesses, which continue to be impacted by weakness in Eastern Europe, Greece and Russia, thereby providing limited visibility regarding the company’s future performance. Apart from Europe, Snap-on has been suffering from prevailing sluggishness in markets like Japan and Middle-East.

However, SNA has an outstanding earnings track record, with the company delivering positive average earnings surprise of 3.1%, in the last four trailing quarters, beating the estimates all through.

SNAP-ON INC Price and EPS Surprise

SNAP-ON INC Price and EPS Surprise | SNAP-ON INC Quote

Currently, SNA has a Zacks Rank #4 (Sell), but that could change following its second-quarter 2016 earnings report which has just released. We have highlighted some of the key details from the just-released announcement below:

Earnings: SNA beats on earnings. Net earnings came in at $2.36 per share, significantly higher than the Zacks Consensus Estimate of $2.22.

Revenue: Net sales of $872.3 million came below the Zacks Consensus Estimate of $877 million.

Key Stats: Despite a challenging macroeconomic environment, SNA witnessed a 16.3% rise in earnings per share, in addition to noteworthy operating margin expansion. Going forward, the company expects to leverage lucrative opportunities in the automotive markets in multiple geographies.

Stock Price: SNA shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on this SNA earnings report later!

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Snap-On Incorporated (SNA) - free report >>

Published in