Snap-On (NYSE:SNA) Issues Earnings Results

Snap-On (NYSE:SNA) posted its quarterly earnings results on Thursday. The company reported $4.94 EPS for the quarter, topping analysts’ consensus estimates of $4.86 by $0.08, FiscalAI reports. The firm had revenue of $1.23 billion during the quarter, compared to analyst estimates of $1.24 billion. Snap-On had a return on equity of 17.71% and a net margin of 21.08%.The business’s revenue for the quarter was up 2.8% on a year-over-year basis. During the same period last year, the company earned $4.82 earnings per share.

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

• Snap-on reported Q4 sales of $1,231.9 million (up 2.8% as reported, 1.4% organic) and diluted EPS of $4.94, with consolidated operating earnings modestly higher year?over?year despite unfavorable FX and a 53rd?week timing effect.
• Management highlighted durable end?market demand — an average vehicle age of 12.8 years and rising repair complexity — which they say supports long?term growth for diagnostics, tools, and RS&I software/data products.
• Tools Group volume was roughly flat but delivered a 150 bps improvement in gross margin as the business pivots to shorter?payback, higher?margin items (new impact sockets, storage configs) while continuing van?network investments.
• C&I sales rose 5% to $398.1 million led by power tools, but operating margin fell to 15.2% (from 16.7%) due to higher material costs, a shift into lower?margin businesses, and international/headwind effects including the U.S. government shutdown.
• Financial Services benefited from the extra fiscal week (?$7.4M revenue), lifting OI, the company ended the year with ?$1.62B cash and ~$2.5B finance receivables, maintained buybacks (227k shares, $80.4M) and ~$260M repurchase capacity while delinquencies modestly rose to 2.1%.

Snap-On Stock Down 2.3%

Shares of NYSE SNA traded down $8.75 during mid-day trading on Thursday, hitting $374.16. 349,969 shares of the stock traded hands, compared to its average volume of 313,843. The stock has a fifty day moving average price of $355.76 and a 200-day moving average price of $341.17. The company has a debt-to-equity ratio of 0.20, a quick ratio of 3.37 and a current ratio of 4.40. The company has a market cap of $19.46 billion, a price-to-earnings ratio of 19.59, a PEG ratio of 2.66 and a beta of 0.81. Snap-On has a 52 week low of $289.81 and a 52 week high of $388.96.

Insiders Place Their Bets

In other news, CEO Nicholas T. Pinchuk sold 22,607 shares of the business’s stock in a transaction on Tuesday, December 2nd. The shares were sold at an average price of $339.15, for a total transaction of $7,667,164.05. Following the completion of the sale, the chief executive officer owned 826,364 shares of the company’s stock, valued at $280,261,350.60. The trade was a 2.66% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, VP Richard Thomas Miller sold 2,000 shares of Snap-On stock in a transaction dated Thursday, December 4th. The shares were sold at an average price of $348.27, for a total value of $696,540.00. Following the transaction, the vice president directly owned 4,158 shares in the company, valued at approximately $1,448,106.66. The trade was a 32.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 40,036 shares of company stock worth $13,710,988 over the last three months. Company insiders own 3.90% of the company’s stock.

Hedge Funds Weigh In On Snap-On

Institutional investors and hedge funds have recently made changes to their positions in the business. State Street Corp raised its position in shares of Snap-On by 1.6% during the 3rd quarter. State Street Corp now owns 2,243,970 shares of the company’s stock valued at $777,603,000 after buying an additional 36,130 shares in the last quarter. Bank of America Corp DE raised its position in Snap-On by 2.0% during the third quarter. Bank of America Corp DE now owns 933,495 shares of the company’s stock valued at $323,484,000 after purchasing an additional 18,549 shares during the period. Ameriprise Financial Inc. lifted its stake in shares of Snap-On by 17.5% in the 2nd quarter. Ameriprise Financial Inc. now owns 800,946 shares of the company’s stock valued at $249,073,000 after purchasing an additional 119,089 shares during the last quarter. Invesco Ltd. boosted its holdings in shares of Snap-On by 1.6% in the 3rd quarter. Invesco Ltd. now owns 746,316 shares of the company’s stock worth $258,621,000 after purchasing an additional 11,769 shares during the period. Finally, Caisse de depot et placement du Quebec increased its position in shares of Snap-On by 5.0% during the 3rd quarter. Caisse de depot et placement du Quebec now owns 433,071 shares of the company’s stock valued at $150,072,000 after purchasing an additional 20,614 shares during the last quarter. 84.88% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

SNA has been the subject of several research reports. Wall Street Zen raised Snap-On from a “hold” rating to a “buy” rating in a research note on Saturday, October 18th. Weiss Ratings restated a “buy (b)” rating on shares of Snap-On in a report on Wednesday, January 21st. Tigress Financial increased their price target on shares of Snap-On from $395.00 to $405.00 and gave the company a “buy” rating in a research report on Tuesday, October 21st. Roth Mkm restated a “buy” rating and issued a $385.00 price objective on shares of Snap-On in a research report on Friday, October 17th. Finally, Robert W. Baird set a $370.00 price objective on shares of Snap-On in a research note on Friday, January 30th. Five research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Snap-On presently has an average rating of “Moderate Buy” and a consensus target price of $365.83.

About Snap-On

Snap?On Incorporated (NYSE: SNA) is a designer, manufacturer and marketer of tools, diagnostic equipment, repair information and shop equipment for professional users. The company’s product range includes hand and power tools, tool storage and cabinets, diagnostic scan tools and software, shop equipment such as lifts and tire changers, and specialized specialty tools for automotive, aviation, marine and industrial applications. Snap?On also offers information and workflow solutions that combine diagnostic data, repair procedures and parts information to support professional technicians.

Founded in 1920 and headquartered in Kenosha, Wisconsin, Snap?On has established a long history in the professional tools market.