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Here's How Snap-on (SNA) is Poised Just Ahead of Q1 Earnings
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Snap-on Incorporated (SNA - Free Report) is slated to release its first-quarter 2024 results on Apr 18, before market open. The company is likely to record top and bottom-line growth when it posts first-quarter results.
The Zacks Consensus Estimate for quarterly earnings is pegged at $4.66 per share, suggesting growth of 1.3% 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 $1.2 billion, indicating a rise of 0.9% from the year-ago quarter’s actual.
In the last reported quarter, the company posted an earnings surprise of 2.6%. SNA has a trailing four-quarter earnings surprise of 6.1%, on average.
Key Factors to Note
Snap-on is 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 is 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 1.3% for Commercial & Industrial Group, and 2% for Repair Systems & Information Group in the first quarter. We expect consolidated organic revenue growth of 0.7% year over year for the quarter under review, driven by a 2.3% rise in the Commercial & Industrial Group, and a 1% jump in the 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 1.6% year over year to $335.2 million for the first 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. But 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:
Central Garden & Pet (CENT - Free Report) currently has an Earnings ESP of +4.32% and a Zacks Rank of 1. CENT is likely to register bottom-line growth when it reports second-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $894.5 million, suggesting a 1.6% drop from the figure reported in the year-ago quarter.
The consensus estimate for CENT’s second-quarter earnings is pegged at 83 cents a share, up 15.3% from the year-ago quarter. The consensus mark has risen a couple of cents in the past 30 days.
Hasbro (HAS - Free Report) currently has an Earnings ESP of +3.33% and a Zacks Rank of 2. HAS is likely to register a top-line decrease when it reports first-quarter 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $743.5 million, suggesting a 25.7% decline from the figure reported in the year-ago quarter.
The consensus estimate for Hasbro’s first-quarter earnings is pegged at 30 cents a share, suggesting a significant increase from a penny reported in the year-earlier quarter. The consensus mark has been unchanged in the past 30 days.
Electronic Arts (EA - Free Report) currently has an Earnings ESP of +1.03% and a Zacks Rank of 3. EA is likely to register a top and bottom-line decline when it reports fourth-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.8 billion, suggesting a 7.7% drop from the figure reported in the year-ago quarter.
The consensus estimate for EA’s fourth-quarter earnings is pegged at $1.56 per share, suggesting an 11.9% decline from the year-ago quarter. The consensus mark has been unchanged in the past 30 days.
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Here's How Snap-on (SNA) is Poised Just Ahead of Q1 Earnings
Snap-on Incorporated (SNA - Free Report) is slated to release its first-quarter 2024 results on Apr 18, before market open. The company is likely to record top and bottom-line growth when it posts first-quarter results.
The Zacks Consensus Estimate for quarterly earnings is pegged at $4.66 per share, suggesting growth of 1.3% 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 $1.2 billion, indicating a rise of 0.9% from the year-ago quarter’s actual.
In the last reported quarter, the company posted an earnings surprise of 2.6%. SNA has a trailing four-quarter earnings surprise of 6.1%, on average.
Key Factors to Note
Snap-on is 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 is 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 1.3% for Commercial & Industrial Group, and 2% for Repair Systems & Information Group in the first quarter. We expect consolidated organic revenue growth of 0.7% year over year for the quarter under review, driven by a 2.3% rise in the Commercial & Industrial Group, and a 1% jump in the 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 1.6% year over year to $335.2 million for the first 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. But 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 -0.09% and a Zacks Rank of 2. 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:
Central Garden & Pet (CENT - Free Report) currently has an Earnings ESP of +4.32% and a Zacks Rank of 1. CENT is likely to register bottom-line growth when it reports second-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $894.5 million, suggesting a 1.6% drop from the figure reported in the year-ago quarter.
The consensus estimate for CENT’s second-quarter earnings is pegged at 83 cents a share, up 15.3% from the year-ago quarter. The consensus mark has risen a couple of cents in the past 30 days.
Hasbro (HAS - Free Report) currently has an Earnings ESP of +3.33% and a Zacks Rank of 2. HAS is likely to register a top-line decrease when it reports first-quarter 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $743.5 million, suggesting a 25.7% decline from the figure reported in the year-ago quarter.
The consensus estimate for Hasbro’s first-quarter earnings is pegged at 30 cents a share, suggesting a significant increase from a penny reported in the year-earlier quarter. The consensus mark has been unchanged in the past 30 days.
Electronic Arts (EA - Free Report) currently has an Earnings ESP of +1.03% and a Zacks Rank of 3. EA is likely to register a top and bottom-line decline when it reports fourth-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.8 billion, suggesting a 7.7% drop from the figure reported in the year-ago quarter.
The consensus estimate for EA’s fourth-quarter earnings is pegged at $1.56 per share, suggesting an 11.9% decline from the year-ago quarter. The consensus mark has been unchanged in the past 30 days.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.