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Snap-on's Pre-Q3 Earnings Reveal Positive Trends: What's in Store?
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Key Takeaways
Snap-on is expected to post a 0.8% rise in Q3 revenues, but a 2.6% decline in earnings per share.
Strong demand in repair systems and tools is seen offsetting softness in critical industries.
Cost inflation, tariffs and global pressures remain key challenges despite solid valuation metrics.
Snap-on Incorporated (SNA - Free Report) is likely to witness a bottom-line decline when it reports third-quarter 2025 earnings on Oct. 16, before the opening bell. The Zacks Consensus Estimate for revenues is $1.16 billion, which indicates a rise of 0.8% from the year-ago quarter’s reported level.
The consensus estimate for quarterly earnings has been unchanged in the past 30 days at $4.58 per share but indicates a decline of 2.6% from the year-earlier quarter’s actual.
The company has a negative trailing four-quarter earnings surprise of 0.2%, on average. It delivered an earnings surprise of 2.4% in the last reported quarter.
Key Factors Likely to Influence SNA’s Q3 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.
On the last reported quarter’s earnings call, management remained optimistic about the strength of the auto repair sector, supported by rising household spending on vehicle maintenance, higher repair volumes and steadily increasing technician wages. The company is also focused on critical industries and sectors such as, natural resources, aviation, the military and heavy-duty fleets, where the penalty for failure is high. SNA believes that critical industries have abundant opportunities ahead.
The Repair Systems & Information Group segment continues to expand its presence with OEM dealerships and independent garages, capitalizing on the growing need for advanced diagnostics and repair information. We estimate 5% year-over-year growth in revenues for the Repair Systems & Information Group for the fiscal third quarter.
Likewise, the Tools Group segment remains focused on product innovation, agile manufacturing and tailored selling efforts that align with technician preferences. The Tools Group showed signs of recovery in the fiscal second quarter, aided by improving U.S. demand, which is expected to have continued in the fiscal third quarter. These results indicate building momentum in the segment and early signs of stabilization following the previous softness. We estimate a 1% decline in revenues for the Tools Group for the fiscal third quarter.
In critical industries, the rising importance of torque, highlighted by the success of tools like the CTM550, underscores Snap-on’s leadership in delivering safety, precision and efficiency. These combined strengths are expected to have bolstered the company’s sales and profitability in the fiscal third quarter.
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 in the to-be-reported quarter. It battles persistent cost inflation from rising raw material and operational expenses, which poses a risk to profitability. The company is also not fully immune to the tariff-related headwinds.
Snap-on continues to face macroeconomic headwinds, especially in its Commercial & Industrial (C&I) Group segment, where geopolitical tensions and economic disruptions in Europe and Asia, particularly China, have weighed on performance. Our model expects sales for C&I Group to decline 2.5% year over year for the fiscal third quarter.
What the Zacks Model Predicts for SNA
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 is not the case here. You can uncover the best stocks before they are 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 almost at par with industry benchmarks. With a forward 12-month price-to-earnings ratio of 17.15X, which is below the five-year high of 18.63X and nears the Tools - Handheld industry’s average of 17X, the stock offers compelling value for investors seeking exposure to the sector.
Image Source: Zacks Investment Research
The recent market movements show that SNA shares have gained 4.5% in the past three months compared with the industry's 5.9% growth.
Image Source: Zacks Investment Research
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:
Carnival Corp. (CCL - Free Report) currently has an Earnings ESP of +7.13% and flaunts a Zacks Rank of 1. CCL is likely to register top and bottom-line growth when it reports fourth-quarter fiscal 2025 results. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for its quarterly revenues is pegged at $6.34 billion, indicating a 6.8% increase from the figure reported in the year-ago quarter. The consensus estimate for CCL’s fiscal fourth-quarter earnings is pegged at 23 cents per share, implying a 64.3% surge from the year-ago quarter’s actual. The consensus mark has risen 15% in the past 30 days.
Boyd Gaming (BYD - Free Report) currently has an Earnings ESP of +4.25% and a Zacks Rank of 2. BYD is likely to register a top-line decline when it reports third-quarter 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $857.8 million, indicating a 10.8% decline from the figure reported in the year-ago quarter.
The consensus estimate for Boyd Gaming’s third-quarter earnings is pegged at $1.54 a share, implying 1.3% growth from the year-earlier quarter. The consensus mark has been unchanged in the past 30 days.
Ralph Lauren Corporation (RL - Free Report) currently has an Earnings ESP of +4.99% and a Zacks Rank of 2. RL is likely to register top and bottom-line growth when it reports second-quarter fiscal 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.9 billion, indicating 8.5% growth from the figure reported in the year-ago quarter.
The consensus estimate for Ralph Lauren’s fiscal second-quarter earnings is pegged at $3.34 a share, implying 31.5% growth from the year-earlier quarter. The consensus mark has moved up 1.8% in the past 30 days.
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Snap-on's Pre-Q3 Earnings Reveal Positive Trends: What's in Store?
Key Takeaways
Snap-on Incorporated (SNA - Free Report) is likely to witness a bottom-line decline when it reports third-quarter 2025 earnings on Oct. 16, before the opening bell. The Zacks Consensus Estimate for revenues is $1.16 billion, which indicates a rise of 0.8% from the year-ago quarter’s reported level.
The consensus estimate for quarterly earnings has been unchanged in the past 30 days at $4.58 per share but indicates a decline of 2.6% from the year-earlier quarter’s actual.
The company has a negative trailing four-quarter earnings surprise of 0.2%, on average. It delivered an earnings surprise of 2.4% in the last reported quarter.
Key Factors Likely to Influence SNA’s Q3 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.
On the last reported quarter’s earnings call, management remained optimistic about the strength of the auto repair sector, supported by rising household spending on vehicle maintenance, higher repair volumes and steadily increasing technician wages. The company is also focused on critical industries and sectors such as, natural resources, aviation, the military and heavy-duty fleets, where the penalty for failure is high. SNA believes that critical industries have abundant opportunities ahead.
The Repair Systems & Information Group segment continues to expand its presence with OEM dealerships and independent garages, capitalizing on the growing need for advanced diagnostics and repair information. We estimate 5% year-over-year growth in revenues for the Repair Systems & Information Group for the fiscal third quarter.
Snap-On Incorporated Price and EPS Surprise
Snap-On Incorporated price-eps-surprise | Snap-On Incorporated Quote
Likewise, the Tools Group segment remains focused on product innovation, agile manufacturing and tailored selling efforts that align with technician preferences. The Tools Group showed signs of recovery in the fiscal second quarter, aided by improving U.S. demand, which is expected to have continued in the fiscal third quarter. These results indicate building momentum in the segment and early signs of stabilization following the previous softness. We estimate a 1% decline in revenues for the Tools Group for the fiscal third quarter.
In critical industries, the rising importance of torque, highlighted by the success of tools like the CTM550, underscores Snap-on’s leadership in delivering safety, precision and efficiency. These combined strengths are expected to have bolstered the company’s sales and profitability in the fiscal third quarter.
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 in the to-be-reported quarter. It battles persistent cost inflation from rising raw material and operational expenses, which poses a risk to profitability. The company is also not fully immune to the tariff-related headwinds.
Snap-on continues to face macroeconomic headwinds, especially in its Commercial & Industrial (C&I) Group segment, where geopolitical tensions and economic disruptions in Europe and Asia, particularly China, have weighed on performance. Our model expects sales for C&I Group to decline 2.5% year over year for the fiscal third quarter.
What the Zacks Model Predicts for SNA
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 is not the case here. You can uncover the best stocks before they are 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 almost at par with industry benchmarks. With a forward 12-month price-to-earnings ratio of 17.15X, which is below the five-year high of 18.63X and nears the Tools - Handheld industry’s average of 17X, the stock offers compelling value for investors seeking exposure to the sector.
Image Source: Zacks Investment Research
The recent market movements show that SNA shares have gained 4.5% in the past three months compared with the industry's 5.9% growth.
Image Source: Zacks Investment Research
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:
Carnival Corp. (CCL - Free Report) currently has an Earnings ESP of +7.13% and flaunts a Zacks Rank of 1. CCL is likely to register top and bottom-line growth when it reports fourth-quarter fiscal 2025 results. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for its quarterly revenues is pegged at $6.34 billion, indicating a 6.8% increase from the figure reported in the year-ago quarter. The consensus estimate for CCL’s fiscal fourth-quarter earnings is pegged at 23 cents per share, implying a 64.3% surge from the year-ago quarter’s actual. The consensus mark has risen 15% in the past 30 days.
Boyd Gaming (BYD - Free Report) currently has an Earnings ESP of +4.25% and a Zacks Rank of 2. BYD is likely to register a top-line decline when it reports third-quarter 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $857.8 million, indicating a 10.8% decline from the figure reported in the year-ago quarter.
The consensus estimate for Boyd Gaming’s third-quarter earnings is pegged at $1.54 a share, implying 1.3% growth from the year-earlier quarter. The consensus mark has been unchanged in the past 30 days.
Ralph Lauren Corporation (RL - Free Report) currently has an Earnings ESP of +4.99% and a Zacks Rank of 2. RL is likely to register top and bottom-line growth when it reports second-quarter fiscal 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.9 billion, indicating 8.5% growth from the figure reported in the year-ago quarter.
The consensus estimate for Ralph Lauren’s fiscal second-quarter earnings is pegged at $3.34 a share, implying 31.5% growth from the year-earlier quarter. The consensus mark has moved up 1.8% in the past 30 days.