Snap-on Q1 Results Top Street View, Plans To Extend Activities Outside Garage

Snap-on Inc (NYSE: SNA) reported first-quarter FY23 sales growth of 7.8% year-over-year to $1.18 billion, an increase of 10.2% on an organic basis, beating the consensus of $1.13 billion.
EPS improved to $4.60 compared to $4.00 in 1Q22, beating the consensus of $4.15.
The gross margin expanded by 110 bps to 49.8%. The operating income before financial services increased by 16.5% Y/Y to $259.8 million, and the margin expanded by 170 bps to 22%.
Financial services revenue was $92.6 million compared to $87.7 million in the year-ago period.
Sales by segments: Commercial & Industrial $363.8 million (+7% Y/Y); Snap-on Tools $537 million (+4.9% Y/Y); and Repair Systems & Information $446.6 million (+12.2% Y/Y).
Snap-on held cash and cash equivalents of $833.8 million as of April 1, 2023.
SNA expects to make continued progress in 2023 along its defined runways for coherent growth.
"Our businesses serving critical industries are well positioned to extend our activities outside the garage, and within automotive repair, we are poised to sustain our advance in that robust market, by enhancing the van channel and expanding with repair shop owners and managers," Chairman and Chief Executive Officer Nick Pinchuk said.
FY23 Outlook: Snap-on anticipates capital expenditures in 2023 of $100 million, and it sees an effective income tax rate of 23% - 24%.
Price Action: SNA shares are trading higher by 1.72% at $243.90 in the pre-market trading session on the last check Thursday.

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