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Snap-on's Pre-Q4 Earnings Snapshot: Time to Buy the Stock?

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Key Takeaways

  • Snap-on is expected to post Q4 revenue growth of 1.6% and EPS growth of 0.8% versus last year.
  • SNA benefits from rising miles driven, aging vehicles and higher repair complexity, boosting tool demand.
  • Snap-on sees strength in RS&I and Tools, though macro uncertainty and cost inflation remain risks.

Snap-on Incorporated (SNA - Free Report) is likely to witness growth in its top and bottom lines when it reports fourth-quarter 2025 earnings on Feb. 5, 2026, before the opening bell. The Zacks Consensus Estimate for revenues is $1.22 billion, which indicates a rise of 1.6% from the year-ago quarter’s reported level.

The Zacks Consensus Estimate for earnings is pegged at $4.86 per share, which indicates growth of 0.8% from the year-ago quarter’s reported figure. The consensus mark has remained unchanged in the past 30 days.

Snap-On Incorporated Price, Consensus and EPS Surprise

Snap-On Incorporated Price, Consensus and EPS Surprise

Snap-On Incorporated price-consensus-eps-surprise-chart | Snap-On Incorporated Quote

The company has a negative trailing four-quarter earnings surprise of 0.2%, on average. It delivered an earnings surprise of 2.6% in the last reported quarter.

Factors Likely to Impact SNA’s Q4 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 quarter’s earnings call, management highlighted continued strength in the auto repair market, driven by rising miles driven, an aging vehicle fleet and increasing vehicle complexity. Higher repair volumes and steadily rising technician wages are supporting spending on tools, diagnostics and repair solutions, which is expected to remain favorable in the fourth quarter.

The Repair Systems & Information (RS&I) Group is expected to continue delivering solid performance, supported by strong demand from OEM dealerships and independent repair shops for advanced diagnostics and repair information. Management emphasized growing adoption of Snap-on’s proprietary software and hardware solutions as repair complexity rises. This momentum is likely to support revenue growth and margins in the to-be-reported quarter.

The Tools Group segment has been showing sequential improvement, aided by product innovation, a pivot toward faster payback items and improving U.S. demand. Management noted positive franchisee sentiment and healthy order activity following the annual Snap-on Franchisee Conference. These factors indicate building momentum heading into the fourth quarter, though technician caution on big-ticket purchases remains a watch point.

Snap-on continues to see opportunities in critical industries such as aviation, natural resources, the military and heavy-duty fleets, where demand for precision and safety-critical tools remains strong. Management indicated that order activity is improving, even as customers remain cautious amid global uncertainty, which might have supported fourth-quarter results.

Despite such strengths, Snap-on faces ongoing macroeconomic pressures. Geopolitical tensions, economic softness in Europe and Asia (particularly China), and trade-related uncertainty continue to weigh on the Commercial & Industrial Group. Persistent raw material and operating cost inflation remains a risk to profitability. These factors might have limited growth in international markets during the quarter.

What the Zacks Model Predicts for SNA Stock

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.

Snap-on has an Earnings ESP of 0.00% and a Zacks Rank of 3 at present. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Valuation Picture

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 18.03X, which is below the five-year high of 18.63X and nears the Tools - Handheld industry’s average of 18.50X, the stock offers compelling value for investors seeking exposure to the sector.

SNA Stock's Valuation

Zacks Investment Research
Image Source: Zacks Investment Research

The recent market movements show that SNA shares have gained 8.4% in the past three months compared with the industry's 12.8% growth.

SNA Stock Price Performance

Zacks Investment Research
Image Source: Zacks Investment Research

Stocks With the Favorable Combination

Here are some companies, which, according to our model, have the right combination of elements to post an earnings beat:

Steven Madden (SHOO - Free Report) currently has an Earnings ESP of +2.92% and a Zacks Rank of 2. SHOO is likely to register a bottom-line decline when it reports fourth-quarter 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $753.3 million, indicating 29.4% growth from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for Steven Madden’s earnings is pegged at 46 cents per share, implying a 16.4% decline from the year-ago quarter’s actual. The consensus mark for earnings has increased by a penny in the past 30 days. SHOO delivered a negative earnings surprise of 2.3% in the last quarter.

Ralph Lauren Corporation (RL - Free Report) currently has an Earnings ESP of +0.53% and a Zacks Rank of 2. RL is likely to register growth in its top and bottom lines when it reports third-quarter fiscal 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.31 billion, indicating 7.9% growth from the figure reported in the year-ago quarter.

The consensus estimate for Ralph Lauren’s fiscal third-quarter earnings is pegged at $5.78 a share, implying 19.9% growth from the year-earlier quarter. The consensus mark has moved up by 2 cents in the past seven days.

Central Garden & Pet (CENT - Free Report) has an Earnings ESP of +5.89% and currently carries a Zacks Rank of 3. CENT is likely to register a bottom-line decline when it reports first-quarter fiscal 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $644.3 million, indicating a 1.9% decline from the figure reported in the prior-year quarter.

The consensus estimate for Central Garden’s earnings is pegged at 11 cents per share, implying a 47.6% decline from the year-ago quarter’s actual. The consensus mark for earnings has declined 26.7% in the past 30 days. CENT delivered an earnings surprise of 5.9% in the last quarter.

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