Snap-On Q2 Results Top Estimates

Snap-on Inc SNA reported second-quarter net sales growth of 49% year-over-year to $1.08 billion, beating the analyst consensus of $974.2 million. Organic sales growth was 42.5%.
Adjusted earnings per share improved to $3.76, beating analyst consensus of $3.21.
Sales by segments: Commercial & Industrial $350.5 million (+33.83% Y/Y); Snap-on Tools $484.1 million (+49.7% Y/Y); and Repair Systems & Information $398.6 million (+62.7% Y/Y).
The gross margin expanded by about 320 bps to 50.2%.
Operating earnings increased by 92.3% Y/Y to $286 million, and margin expanded by around 590 bps to 26.5%.
Net cash generated by operating activities was $238.2 million, compared to $253.6 million last year.
The company had cash and cash equivalents of $965.9 million as of July 3, 2021.
Outlook: Snap-on expects capital expenditures for FY21 to be in the range of $90 million to $100 million ($37.6 million has been used to date).
Price Action: SNA shares are down 1.02% at $221.74 on the last check Thursday.

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