Brian Sozzi Discusses Snap-On's Earnings (SNA)

Brian Sozzi of Wall Street Strategies is out with a research report on Snap-On's SNA earnings. Sozzi discusses the different headwinds to Snap-On's business in the quarter, such as Europe, slowing auto sales in the U.S., and the earthquake in Japan, as well as commodity costs. Sozzi writes, "With these factors as background, Snap-On performed impressively in my view, notching 130 bps of gross margin expansion year on year, ending up in a cash flow positive position, and building on top of the rebound in sales in 1Q09 by posting double-digit percentage gains in two of three business segments. Moreover, the results came not only against a backdrop of the aforementioned headwinds, but during the seasonally slow first quarter." Shares of Snap-On closed at $61.01 yesterday, a gain of $1.26, or 2.1%.