Snap-On (NYSE:SNA) Announces Quarterly Earnings Results

Snap-On (NYSE:SNA) issued its quarterly earnings results on Thursday. The company reported $4.64 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.93 by ($0.29), Zacks reports. The business had revenue of $1.18 billion during the quarter, compared to the consensus estimate of $1.24 billion. Snap-On had a return on equity of 17.07% and a net margin of 21.25%. The firm’s revenue was down .6% compared to the same quarter last year. During the same quarter in the previous year, the business earned $4.71 earnings per share.

Here are the key takeaways from Snap-On’s conference call:

• Organic sales declined 2.8% and adjusted operating margin fell 50 basis points, while EPS decreased to $4.64 from $4.71 excluding the prior-year legal benefit.
• The Snap-on Tools Group reported a 7% organic sales decline as franchisees reduced van inventory to build cash cushions against sharply higher diesel prices, driving operating margin down to 18% from 21.7%.
• Commercial & Industrial delivered a record quarter, with organic sales up 7.4%, operating income up 29.9%, and operating margin expanding 290 basis points to 18.5% on strong military, industrial, natural resources, and precision-torque demand.
• Repair Systems & Information organic sales fell 5.5%, primarily because OEM dealerships reduced project-related spending amid delayed or fewer new-vehicle launches, although adjusted margins remained broadly stable and gross margin improved.
• Management said the core vehicle-repair market remains fundamentally strong, technician demand and spending are stable, diesel-price turbulence appears to have flattened, and Snap-on continues investing in products, brands, and people while maintaining a robust 51% consolidated gross margin.

Snap-On Price Performance

NYSE SNA opened at $356.64 on Friday. Snap-On has a one year low of $320.80 and a one year high of $423.02. The stock has a 50-day moving average of $376.21 and a 200 day moving average of $384.56. The company has a market capitalization of $18.45 billion, a price-to-earnings ratio of 18.19, a PEG ratio of 2.45 and a beta of 0.71. The company has a debt-to-equity ratio of 0.15, a quick ratio of 2.64 and a current ratio of 3.43.

Snap-On Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 10th. Investors of record on Wednesday, August 19th were given a dividend of $2.44 per share. The ex-dividend date of this dividend was Wednesday, August 19th. This represents a $9.76 annualized dividend and a dividend yield of 2.7%. Snap-On’s dividend payout ratio (DPR) is 49.77%.

Snap-On News Summary

Here are the key news stories impacting Snap-On this week:

• Positive Sentiment: Snap-on remained profitable, reporting a 21.25% net margin and 17.07% return on equity. Its balance sheet also appears comparatively strong, with low leverage and substantial liquidity. Snap-on third-quarter earnings report

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on SNA shares. Tigress Financial lifted their target price on shares of Snap-On from $445.00 to $485.00 and gave the company a “buy” rating in a report on Friday, July 31st. Roth Capital restated a “buy” rating and issued a $461.00 price target (up from $409.00) on shares of Snap-On in a research note on Friday, July 24th. Robert W. Baird set a $415.00 price objective on Snap-On in a research report on Friday, July 24th. Weiss Ratings reiterated a “buy (b)” rating on shares of Snap-On in a research note on Thursday, October 15th. Finally, Barclays dropped their target price on Snap-On from $450.00 to $435.00 and set an “overweight” rating on the stock in a report on Tuesday, October 6th. Four investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat, Snap-On presently has a consensus rating of “Moderate Buy” and a consensus target price of $449.00.

Insiders Place Their Bets

In other news, VP Marty V. Ozolins sold 800 shares of Snap-On stock in a transaction that occurred on Wednesday, August 26th. The shares were sold at an average price of $400.00, for a total value of $320,000.00. Following the completion of the sale, the vice president directly owned 1,526 shares in the company, valued at $610,400. The trade was a 34.39% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Nicholas Pinchuk sold 22,889 shares of Snap-On stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $399.69, for a total transaction of $9,148,504.41. Following the completion of the sale, the chief executive officer directly owned 867,779 shares of the company’s stock, valued at approximately $346,842,588.51. This trade represents a 2.57% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 38,331 shares of company stock worth $15,525,200 in the last 90 days. Corporate insiders own 3.80% of the company’s stock.

Snap-On Company Profile

Snap-on Incorporated is a manufacturer and distributor of professional tools, equipment, diagnostics, and related services. Its offerings include hand and power tools, tool storage, vehicle repair equipment, diagnostic systems, and repair information and management software. The company serves professional users who work in automotive repair, heavy-duty transportation, aviation, agriculture, construction, industrial production, government, and other technical fields.

Snap-on markets products under the Snap-on brand and other brands, including Blue-Point, Bahco, and Williams.