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Snap-On (SNA) Q2 Earnings Beat Estimates, Sales Up

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Headquartered in Kenosha, WI, Snap-on Incorporated (SNA - Free Report) is a global provider of 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 overarching business model, which aims to maximize value-creation by focusing on areas like safety, quality of service, customer satisfaction and innovation, has emerged as a tried and tested growth driver. In this regard, the rapid improvement process, designed to improve organizational efficiency and slash costs, including working capital requirements, has helped Snap-on improve sales, margins and savings over the past few quarters.

Despite these positives, ongoing softness in industrial markets has significantly affected client spending, marring the company’s prospects. Also, sluggish oil and gas market pose as concerns for the company.

However, SNA has an outstanding earnings track record, and has delivered an average positive earnings surprise of 3.6% in the last four trailing quarters, beating estimates all through.

Snap-On Incorporated Price and EPS Surprise

Currently, SNA has a Zacks Rank #3 (Hold), but that could change following its second-quarter 2017 earnings report which has just released. You can see the complete list of today’s Zacks #1 Rank stocks here.

We have highlighted some of the key details from the just-released announcement below:

Earnings: SNA beat on earnings. Net earnings came in at $2.60 per share, higher than the Zacks Consensus Estimate of $2.56.

Revenue: Net sales of $921.4 million missed the Zacks Consensus Estimate of $922 million by a whisker.

Key Stats: Despite a challenging macroeconomic environment, SNA witnessed a 10.2% year over year rise in earnings per share and steady sales expansion. Going forward, the company expects its value-creation processes will lead to improvements in safety, quality of service, customer satisfaction and innovation.

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!

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