Snap-on's Earnings: A Preview

Snap-on SNA is preparing to release its quarterly earnings on Thursday, 2025-04-17. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Snap-on to report an earnings per share (EPS) of $4.95.

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.

Performance in Previous Earnings

The company's EPS beat by $0.03 in the last quarter, leading to a 0.39% drop in the share price on the following day.

Here's a look at Snap-on's past performance and the resulting price change:

Performance of Snap-on Shares

Shares of Snap-on were trading at $337.07 as of April 15. Over the last 52-week period, shares are up 28.67%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analysts' Take on Snap-on

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Snap-on.

The consensus rating for Snap-on is Outperform, derived from 7 analyst ratings. An average one-year price target of $364.14 implies a potential 8.03% upside.

Peer Ratings Overview

The following analysis focuses on the analyst ratings and average 1-year price targets of Pentair, Dover and Fortive, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for Pentair, with an average 1-year price target of $110.5, suggesting a potential 67.22% downside.
• Analysts currently favor an Neutral trajectory for Dover, with an average 1-year price target of $206.18, suggesting a potential 38.83% downside.
• Analysts currently favor an Neutral trajectory for Fortive, with an average 1-year price target of $79.67, suggesting a potential 76.36% downside.

Analysis Summary for Peers

The peer analysis summary offers a detailed examination of key metrics for Pentair, Dover and Fortive, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

Snap-on ranks at the top for Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth.

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.

Snap-on: Delving into Financials

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Revenue Growth: Snap-on's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 0.18%. This indicates a substantial increase in the company's 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 is impressive, surpassing industry averages. With a net margin of 21.53%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Snap-on's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 4.75%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 3.26%, the company showcases effective utilization of assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.24.

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.