Snap-on SNA is gearing up to announce its quarterly earnings on Thursday, 2024-10-17. Here's a quick overview of what investors should know before the release.
Analysts are estimating that Snap-on will report an earnings per share (EPS) of $4.59.
The market awaits Snap-on's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.
It's important for new investors to understand that guidance can be a significant driver of stock prices.
Past Earnings Performance
During the last quarter, the company reported an EPS missed by $0.03, leading to a 0.13% increase in the share price on the subsequent day.
Here's a look at Snap-on's past performance and the resulting price change:
| Quarter | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 |
|---|---|---|---|---|
| EPS Estimate | 4.94 | 4.64 | 4.66 | |
| EPS Actual | 4.91 | 4.75 | 4.75 | 4.51 |
| Price Change % | 0.0% | 3.0% | -1.0% | 0.0% |
Stock Performance
Shares of Snap-on were trading at $295.68 as of October 15. Over the last 52-week period, shares are up 18.1%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Insights Shared by Analysts on Snap-on
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Snap-on.
With 3 analyst ratings, Snap-on has a consensus rating of Outperform. The average one-year price target is $328.67, indicating a potential 11.16% upside.
Analyzing Ratings Among Peers
In this comparison, we explore the analyst ratings and average 1-year price targets of IDEX, Pentair and Stanley Black & Decker, three prominent industry players, offering insights into their relative performance expectations and market positioning.
- IDEX received a Buy consensus from analysts, with an average 1-year price target of $233.57, implying a potential 21.01% downside.
- Pentair is maintaining an Outperform status according to analysts, with an average 1-year price target of $101.27, indicating a potential 65.75% downside.
- The consensus among analysts is an Neutral trajectory for Stanley Black & Decker, with an average 1-year price target of $102.1, indicating a potential 65.47% downside.
Peer Analysis Summary
The peer analysis summary outlines pivotal metrics for IDEX, Pentair and Stanley Black & Decker, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Snap-on | Outperform | -0.37% | $667.50M | 5.20% |
| IDEX | Buy | -4.61% | $366.80M | 3.89% |
| Pentair | Outperform | 1.55% | $437.90M | 5.51% |
| Stanley Black & Decker | Neutral | -3.23% | $1.14B | -0.13% |
Key Takeaway:
Snap-on is at the top for Revenue Growth with a slight decrease. It is in the middle for Gross Profit. Snap-on is at the top for Return on Equity.
Unveiling the Story Behind Snap-on
Snap-on manufactures premium tools and software for repair professionals. Hand tools are sold through a franchisee-operated mobile van network that serve auto technicians who purchase tools at their own expense. A unique element of its business model is that franchisees bear significant risk, as they must invest in the mobile van, inventory, and software. At the same time, franchisees extend personal credit directly to technicians on an individual tool basis. Snap-on currently operates three segments: repair systems and information, commercial and industrial, and tools. Its finance arm provides financing to franchisees to run their operations, which includes offering loans and leases for mobile vans.
Financial Milestones: Snap-on's Journey
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
Revenue Challenges: Snap-on's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -0.37%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.
Net Margin: Snap-on's net margin excels beyond industry benchmarks, reaching 21.19%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): Snap-on's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 5.2%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Snap-on's ROA stands out, surpassing industry averages. With an impressive ROA of 3.52%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: With a below-average debt-to-equity ratio of 0.24, Snap-on adopts a prudent financial strategy, indicating a balanced approach to debt management.
To track all earnings releases for Snap-on visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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