Snap-on: Earnings Expectations High Ahead of Q1 Release

Snap-on Incorporated (SNA) holds a market capitalization of $17.9 billion and is prominently known for its manufacture and marketing of premium tools, equipment, diagnostics, and repair solutions targeted at professional sectors like automotive, aerospace, and industrial manufacturing. Established in 1920, Snap-on is headquartered in Kenosha, Wisconsin, and operates across several segments: Commercial & Industrial Group, Snap-on Tools Group, Repair Systems & Information Group, and Financial Services. The company plans to announce its Q1 earnings on Thursday, Apr. 17.

In anticipation of the earnings report, analysts predict that SNA will achieve a profit of $4.82 per share on a diluted basis, reflecting an increase of 1.5% compared to last year’s figure of $4.75. Notably, Snap-on has surpassed Wall Street’s adjusted EPS expectations in three of the last four quarters, experiencing one miss during that period.

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In the most recent quarter’s results, Snap-on reported an adjusted EPS of $4.82, slightly exceeding consensus estimates while showcasing strong profit margins and enhanced free cash flow.

Looking ahead to fiscal 2025, analysts forecast Snap-on’s EPS to reach $19.76, representing a 3% increase from the $19.19 earned in fiscal 2024. By fiscal 2026, the EPS is expected to grow further, hitting $21.14, a year-over-year increase of 7%.

Over the past 52 weeks, Snap-on shares have appreciated by 11.9%, outperforming the broader S&P 500 Index’s ($SPX) gains of 3.6%, as well as the negligible returns of the Industrial Select Sector SPDR Fund (XLI) during the same period.

Following its Q4 2024 results released on Feb. 6, Snap-on shares dipped more than 4%. The company reported revenue of $1.2 billion, slightly better than the prior year and above expectations. Net income reached $258.1 million, or $4.82 per share, again surpassing forecasts. Additionally, Snap-on improved its gross margin to 49.7% and operating margin to 22.1%, thanks to cost efficiencies.

Analysts maintain a cautiously optimistic stance on SNA Stock, currently rated “Moderate Buy.” Among 11 analysts, three recommend a “Strong Buy,” one suggests a “Moderate Buy,” six have a “Hold” rating, and one advises a “Moderate Sell.”

The average analyst price target for SNA is $355.57, indicating a premium of 8.6% from the stock’s current trading levels.

On the date of publication, Kritika Sarmah did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data are for informational purposes only. For more details, please view the Barchart Disclosure Policy here.

The views expressed in this article are those of the author and do not necessarily reflect the views of Nasdaq, Inc.