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Snap-on's Q3 earnings rose to $4.71 per share, topping expectations and prior-year results.
Net sales grew 3.8% to $1.19B, driven by 3% organic growth and favorable currency impact.
Operating margin expanded to 26.9% as Snap-on advanced growth across tools and repair segments.
Snap-on Inc. (SNA - Free Report) has reported solid third-quarter 2025 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate and grew year over year. Results showed ongoing momentum, along with the ability to effectively manage uncertainty and trade turbulence.
Snap-on’s adjusted earnings of $4.71 per share surpassed the Zacks Consensus Estimate of $4.59. The figure increased from adjusted earnings of $4.70 in the year-ago quarter.
Net sales totaled $1.191 billion, up 3.8% from the prior year and exceeded the Zacks Consensus Estimate of $1.151 billion. An organic sales rise of 3% ($34.8 million) and $9 million of positive foreign currency fluctuation aided sales. The company demonstrated strength through solid execution and continued momentum in key growth areas.
Snap-On Incorporated Price, Consensus and EPS Surprise
The gross profit of $605.9 million rose 3.1% year over year, whereas the gross margin contracted 30 basis points (bps) year over year to 50.9%. Our model expected a gross margin of 51%, down 20 bps from the year-ago quarter.
Snap-on’s operating earnings before financial services totaled $278.5 million, up 10.3% year over year. As a percentage of sales, operating earnings before financial services increased 140 bps to 23.4% in the third quarter. The Financial Services unit's operating earnings were $68.9 million, down 3.9% year over year.
Consolidated operating earnings (including financial services) were $347.4 million, up 7.2% year over year. As a percentage of revenues, operating earnings expanded 90 bps year over year to 26.9%.
Snap-on’s Q3 Segmental Analysis
Sales in the Commercial & Industrial Group inched up 0.5% from the year-ago quarter to $367.7 million due to a $4.8 million in favorable foreign currency translation, partly offset by a $2.8 million or 0.8% organic sales drop. The organic decline is mainly owing to reductions in the segment’s Asia Pacific business, somewhat offset by increased activity with customers in critical industries and in the specialty torque operation. For the third quarter, we expected sales of $356.6 million for the segment.
The Tools Group segment’s sales gained 1.1% year over year to $506 million. We estimated sales of $495.5 million for the segment. The increase resulted from an organic sales gain of 1%, driven by higher activity in the segment’s international operations and slightly increased sales in the U.S. business. Also, a $0.6 million benefit from foreign currency translation aided sales.
Sales in Repair Systems & Information Group improved 10% year over year to $464.8 million, with organic sales growth of 8.9% and a $4 million boost from foreign currency translation. Organic sales grew, driven by increased activity with OEM dealerships and higher sales of diagnostic and repair information products to independent repair shops, though partially offset by lower undercar equipment volumes. Our estimate for sales from this segment was $443.8 million.
The Financial Services business’ revenues rose 0.7% year over year to $101.1 million. Our estimate for sales from this segment was $101.6 million.
SNA's Financial Snapshot
Snap-on ended the third quarter of 2025 with cash and cash equivalents of $1.53 billion, with shareholders’ equity (before non-controlling interest) of $5.82 billion. The company expects a capital expenditure of $100 million for 2025, of which $62.5 million was spent in the first nine months.
What’s Ahead for Snap-on?
Management expects SNA’s markets and operations to have considerable resilience against the uncertainties of the operating landscape. For 2025, the company expects to continue advancing its core growth strategies, leveraging its established strengths in automotive repair while expanding into adjacent markets, new geographies and critical industries where reliability is essential. SNA expects an effective tax rate of 22-23% for 2025.
The Zacks Rank #3 (Hold) company’s shares have lost 1.4% in the past three months against the industry's 0.4% growth.
BYD delivered a trailing four-quarter earnings surprise of 9.1%, on average. The Zacks Consensus Estimate for BYD’s current financial-year EPS indicates growth of 5.2% from the year-ago number.
Guess?, Inc. (GES - Free Report) , which is a designer and marketer of casual apparel and accessories, currently carries a Zacks Rank #2 (Buy).
GES delivered a trailing four-quarter earnings surprise of 26.7%, on average. The Zacks Consensus Estimate for GES’ current financial-year sales indicates growth of 7% from the year-ago number.
Hanesbrands Inc. (HBI - Free Report) , which is a designer and manufacturer of apparel essentials for men, women and children in the US and internationally, currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for HBI’s current financial-year EPS is expected to rise 65% from the corresponding year-ago reported figure. HBI delivered a trailing four-quarter earnings surprise of 56.1%, on average.
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Snap-on's Q3 Earnings Beat Estimates, Organic Sales Rise 3%
Key Takeaways
Snap-on Inc. (SNA - Free Report) has reported solid third-quarter 2025 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate and grew year over year. Results showed ongoing momentum, along with the ability to effectively manage uncertainty and trade turbulence.
Snap-on’s adjusted earnings of $4.71 per share surpassed the Zacks Consensus Estimate of $4.59. The figure increased from adjusted earnings of $4.70 in the year-ago quarter.
SNA’s Quarterly Performance: Key Metrics & Insights
Net sales totaled $1.191 billion, up 3.8% from the prior year and exceeded the Zacks Consensus Estimate of $1.151 billion. An organic sales rise of 3% ($34.8 million) and $9 million of positive foreign currency fluctuation aided sales. The company demonstrated strength through solid execution and continued momentum in key growth areas.
Snap-On Incorporated Price, Consensus and EPS Surprise
Snap-On Incorporated price-consensus-eps-surprise-chart | Snap-On Incorporated Quote
The gross profit of $605.9 million rose 3.1% year over year, whereas the gross margin contracted 30 basis points (bps) year over year to 50.9%. Our model expected a gross margin of 51%, down 20 bps from the year-ago quarter.
Snap-on’s operating earnings before financial services totaled $278.5 million, up 10.3% year over year. As a percentage of sales, operating earnings before financial services increased 140 bps to 23.4% in the third quarter. The Financial Services unit's operating earnings were $68.9 million, down 3.9% year over year.
Consolidated operating earnings (including financial services) were $347.4 million, up 7.2% year over year. As a percentage of revenues, operating earnings expanded 90 bps year over year to 26.9%.
Snap-on’s Q3 Segmental Analysis
Sales in the Commercial & Industrial Group inched up 0.5% from the year-ago quarter to $367.7 million due to a $4.8 million in favorable foreign currency translation, partly offset by a $2.8 million or 0.8% organic sales drop. The organic decline is mainly owing to reductions in the segment’s Asia Pacific business, somewhat offset by increased activity with customers in critical industries and in the specialty torque operation. For the third quarter, we expected sales of $356.6 million for the segment.
The Tools Group segment’s sales gained 1.1% year over year to $506 million. We estimated sales of $495.5 million for the segment. The increase resulted from an organic sales gain of 1%, driven by higher activity in the segment’s international operations and slightly increased sales in the U.S. business. Also, a $0.6 million benefit from foreign currency translation aided sales.
Sales in Repair Systems & Information Group improved 10% year over year to $464.8 million, with organic sales growth of 8.9% and a $4 million boost from foreign currency translation. Organic sales grew, driven by increased activity with OEM dealerships and higher sales of diagnostic and repair information products to independent repair shops, though partially offset by lower undercar equipment volumes. Our estimate for sales from this segment was $443.8 million.
The Financial Services business’ revenues rose 0.7% year over year to $101.1 million. Our estimate for sales from this segment was $101.6 million.
SNA's Financial Snapshot
Snap-on ended the third quarter of 2025 with cash and cash equivalents of $1.53 billion, with shareholders’ equity (before non-controlling interest) of $5.82 billion. The company expects a capital expenditure of $100 million for 2025, of which $62.5 million was spent in the first nine months.
What’s Ahead for Snap-on?
Management expects SNA’s markets and operations to have considerable resilience against the uncertainties of the operating landscape. For 2025, the company expects to continue advancing its core growth strategies, leveraging its established strengths in automotive repair while expanding into adjacent markets, new geographies and critical industries where reliability is essential. SNA expects an effective tax rate of 22-23% for 2025.
The Zacks Rank #3 (Hold) company’s shares have lost 1.4% in the past three months against the industry's 0.4% growth.
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The Zacks Consensus Estimate for HBI’s current financial-year EPS is expected to rise 65% from the corresponding year-ago reported figure. HBI delivered a trailing four-quarter earnings surprise of 56.1%, on average.