Zinger Key Points
- Snap-On's Q4 net sales grew 0.2% YoY to $1.1987 billion, surpassing the $1.197 billion consensus estimate.
- The company reported a 146 bps gross margin expansion, with EPS rising to $4.82, beating the $4.80 consensus.
- Get 5 stock picks identified before their biggest breakouts, identified by the same system that spotted Insmed, Sprouts, and Uber before their 20%+ gains.
Snap-On Inc. SNA shares are trading lower after the company posted fourth-quarter 2024 results.
Here’s a breakdown of the report:
- Quarterly net sales reached $1.1987 billion, reflecting a 0.2% year-over-year increase and surpassing the consensus estimate of $1.197 billion.
- Net sales reflected a $2 million organic gain and $2.1 million from acquisitions, partially offset by a $2 million FX impact.
- The gross margin expanded by 146 bps to 49.7%, and gross profit rose 3.2% year over year to $596.1 million.
- Financial services revenue in the quarter was $100.5 million compared to $97.2 million in the prior year quarter.
- The operating margin before financial services was 22.1%, up 57 bps, and the corresponding income rose 2.8% to $265.2 million.
- EPS for the quarter was $4.82, up from $4.75 YoY, beating the consensus of $4.80.
- $1.36 billion in cash and equivalents at the end of the quarter.
- Operating cash flow for the quarter totaled $293.5 million versus $269.9 million a year ag
- Free cash flow stood at $249.2 million.
Sales by segments:
- Commercial & Industrial $379.2 million (+4.2% YoY)
- Snap-on Tools $506.6 million (-1.3% YoY)
- Repair Systems & Information $456.6 million (+1.3% YoY).
Snap-on CEO Nick Pinchuk, in a prepared statement, praised “the Tools Group success” and reiterated the company’s aim to expand its position with shop owners and managers by serving “the rising complexity of vehicle repair.”
Outlook: Snap-on expects continued progress in 2025, leveraging its strengths in automotive repair while expanding into adjacent markets, new geographies, and critical industries.
The company projects ~$100 million in capital expenditures and an effective income tax rate of 22%-23% for the entire year.
Price Action: Snap-on shares traded lower by 3.16% at $344.85 premarket at the last check Thursday.
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