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Snap-on Gears Up for Q2 Earnings: What Lies Ahead for the Stock?
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Key Takeaways
SNA is facing macroeconomic, geopolitical and geographic challenges across key markets.
Tools Group weakness continues, due to soft U.S. demand and foreign currency pressure.
Rising raw material and operational costs pose ongoing risks to SNA's profitability.
Snap-on Incorporated (SNA - Free Report) is likely to witness top and bottom-line declines when it reports second-quarter 2025 earnings on July 17, before the opening bell. The Zacks Consensus Estimate for revenues is $1.2 billion, which indicates a drop of 2.2% from the year-ago quarter’s level.
The consensus estimate for quarterly earnings has been stable over the past 30 days at $4.61 per share but indicates a decline of 6.1% from the year-earlier quarter’s tally. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
The company has a negative trailing four-quarter earnings surprise of almost 1%, on average. It delivered a negative earnings surprise of 6.2% in the last reported quarter.
Key Factors Likely to Influence SNA’s Q2 Results
Snap-on has been reinforcing its business model through initiatives that enhance value creation across safety, service quality, customer satisfaction and innovation. The company’s strategic growth agenda includes expanding its franchise network, deepening relationships with repair shop owners and increasing its presence in emerging markets. Its focus on Rapid Continuous Improvement, a process aimed at boosting efficiency, controlling costs and enhancing organizational performance, is encouraging. SNA’s innovation pipeline remains strong, with ongoing investments in product development and global brand expansion.
Despite such strengths, Snap-on faces several external challenges. Macroeconomic headwinds, geographic pressures in critical industries and geopolitical disruptions are likely to have weighed on the company’s performance. It battles persistent cost inflation from rising raw material and operational expenses, which poses a risk to profitability.
In addition, Snap-on has been witnessing sluggishness in its Tools Group unit for a while, owing to lower activity in the U.S. operations and adverse foreign currency translations. We estimate a 4% decline in the Tools Group for the second quarter. Moreover, the company is not fully immune to the tariff-related headwinds.
Nevertheless, Snap-on leverages its manufacturing strategy with quick adjustments to the evolving production landscapes. The automotive repair arena has been strong with household spending on repairs and substantial growth in car repairs. Management had expected SNA’s markets and operations to have considerable resilience against the uncertainties of the operating landscape, with continuous progress along its defined runways for growth. Our model predicts a 3% rise for the Repair Systems & Information Group for the second quarter.
What the Zacks Model Predicts for SNA
Our proven model doesn’t 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 has an Earnings ESP of 0.00% and a Zacks Rank of 3.
Valuation Picture of SNA Stock
From a valuation perspective, Snap-on offers an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 16.54x, which is below the five-year high of 18.63x and the Tools - Handheld industry’s average of 17.50x, the stock offers compelling value for investors seeking exposure to the sector.
The recent market movements show that SNA’s shares have lost 4.8% in the past three months compared with the industry's 0.8% drop.
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:
DIS is likely to register bottom and top-line growth when it reports third-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $23.7 billion, indicating a 2.4% increase from the figure reported in the year-ago quarter.
The consensus estimate for DIS’ fiscal third-quarter earnings is pegged at $1.47 per share, implying 5.8% growth from the year-ago quarter’s actual. The consensus mark has risen a couple of cents in the past 30 days.
MGM Resorts International (MGM - Free Report) currently has an Earnings ESP of +13.08% and a Zacks Rank of 3. MGM is likely to register a top-line drop when it reports second-quarter 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $4.3 billion, indicating a 0.9% drop from the figure reported in the year-ago quarter.
The consensus estimate for MGM Resorts’ second-quarter earnings is pegged at 56 cents a share, implying a 34.9% decrease from the year-earlier quarter. The consensus mark has moved up a couple of cents in the past 30 days.
lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +0.54% and a Zacks Rank of 3. LULU is likely to register top-line growth when it reports second-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.5 billion, indicating 7.1% growth from the figure reported in the year-ago quarter.
The consensus estimate for LULU’s second-quarter earnings is pegged at $2.87 a share, implying an 8.9% decrease from the year-earlier quarter. The consensus mark has dipped 1.4% in the past 30 days.
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Snap-on Gears Up for Q2 Earnings: What Lies Ahead for the Stock?
Key Takeaways
Snap-on Incorporated (SNA - Free Report) is likely to witness top and bottom-line declines when it reports second-quarter 2025 earnings on July 17, before the opening bell. The Zacks Consensus Estimate for revenues is $1.2 billion, which indicates a drop of 2.2% from the year-ago quarter’s level.
The consensus estimate for quarterly earnings has been stable over the past 30 days at $4.61 per share but indicates a decline of 6.1% from the year-earlier quarter’s tally. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
The company has a negative trailing four-quarter earnings surprise of almost 1%, on average. It delivered a negative earnings surprise of 6.2% in the last reported quarter.
Key Factors Likely to Influence SNA’s Q2 Results
Snap-on has been reinforcing its business model through initiatives that enhance value creation across safety, service quality, customer satisfaction and innovation. The company’s strategic growth agenda includes expanding its franchise network, deepening relationships with repair shop owners and increasing its presence in emerging markets. Its focus on Rapid Continuous Improvement, a process aimed at boosting efficiency, controlling costs and enhancing organizational performance, is encouraging. SNA’s innovation pipeline remains strong, with ongoing investments in product development and global brand expansion.
Despite such strengths, Snap-on faces several external challenges. Macroeconomic headwinds, geographic pressures in critical industries and geopolitical disruptions are likely to have weighed on the company’s performance. It battles persistent cost inflation from rising raw material and operational expenses, which poses a risk to profitability.
In addition, Snap-on has been witnessing sluggishness in its Tools Group unit for a while, owing to lower activity in the U.S. operations and adverse foreign currency translations. We estimate a 4% decline in the Tools Group for the second quarter. Moreover, the company is not fully immune to the tariff-related headwinds.
Nevertheless, Snap-on leverages its manufacturing strategy with quick adjustments to the evolving production landscapes. The automotive repair arena has been strong with household spending on repairs and substantial growth in car repairs. Management had expected SNA’s markets and operations to have considerable resilience against the uncertainties of the operating landscape, with continuous progress along its defined runways for growth. Our model predicts a 3% rise for the Repair Systems & Information Group for the second quarter.
What the Zacks Model Predicts for SNA
Our proven model doesn’t 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 0.00% and a Zacks Rank of 3.
Valuation Picture of SNA Stock
From a valuation perspective, Snap-on offers an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 16.54x, which is below the five-year high of 18.63x and the Tools - Handheld industry’s average of 17.50x, the stock offers compelling value for investors seeking exposure to the sector.
The recent market movements show that SNA’s shares have lost 4.8% in the past three months compared with the industry's 0.8% drop.
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:
Disney (DIS - Free Report) currently has an Earnings ESP of +3.41% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
DIS is likely to register bottom and top-line growth when it reports third-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $23.7 billion, indicating a 2.4% increase from the figure reported in the year-ago quarter.
The consensus estimate for DIS’ fiscal third-quarter earnings is pegged at $1.47 per share, implying 5.8% growth from the year-ago quarter’s actual. The consensus mark has risen a couple of cents in the past 30 days.
MGM Resorts International (MGM - Free Report) currently has an Earnings ESP of +13.08% and a Zacks Rank of 3. MGM is likely to register a top-line drop when it reports second-quarter 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $4.3 billion, indicating a 0.9% drop from the figure reported in the year-ago quarter.
The consensus estimate for MGM Resorts’ second-quarter earnings is pegged at 56 cents a share, implying a 34.9% decrease from the year-earlier quarter. The consensus mark has moved up a couple of cents in the past 30 days.
lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +0.54% and a Zacks Rank of 3. LULU is likely to register top-line growth when it reports second-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.5 billion, indicating 7.1% growth from the figure reported in the year-ago quarter.
The consensus estimate for LULU’s second-quarter earnings is pegged at $2.87 a share, implying an 8.9% decrease from the year-earlier quarter. The consensus mark has dipped 1.4% in the past 30 days.