Snap-On Inc (NYSE: SNA) reported second-quarter FY23 sales growth of 4.8% year-on-year to $1.191 billion, marginally beating the analyst consensus of $1.19 billion.
The revenue increase reflected a $63.0 million, or 5.6%, organic sales gain, partially offset by $8.3 million of unfavorable foreign currency translation.
Segment Sales: Commercial & Industrial Group climbed 3%, Snap-on Tools Group rose 1.1% and Repair Systems & Information Group increased 8.5%, all on an organic basis.
Gross profit for the quarter gained 9% to 603.7 million, and the gross margin expanded 190 basis points to 50.6%.
Operating income for the quarter increased 10.2% to $343.9 million and the operating margin expanded 130 basis points to 26.8%.
EPS of $4.89 beat the analyst consensus of $4.56, a 14.5% increase from last year.
Snap held $871.3 million in cash and equivalents as of July 1, 2023. Operating cash flow totaled $270.3 million.
Long-term debt as of July 1, 2023, was $1.18 billion.
Outlook: Snap sees FY23 capital expenditures of approximately $100 million.
It anticipates an FY23 effective income tax rate of 23% to 24%.
Price Action: SNA shares closed lower by 0.26% at $294.31 on Wednesday.
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