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Snap-on Incorporated (SNA), with a market cap of $13.5 billion, is a global leader in producing and distributing tools, diagnostics, and systems solutions for professional users across various industries. Based in Kenosha, Wisconsin, the company is set to unveil its fiscal Q2 earnings results on Thursday, July 18.
Ahead of this event, analysts expect Snap-on to report a profit of $4.94 per share, indicating a slight growth of 1% from $4.89 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in each of the past four quarterly reports. Strong demand for under-car equipment from original equipment manufacturer (OEM) dealerships and independent repair shops helped the company surpass the consensus EPS estimate by 1.9% in the most recent quarter.
For fiscal 2024, analysts expect SNA to report EPS of $19.01, up 1.3% from $18.76 in fiscal 2023. Looking forward to fiscal 2025, EPS is expected to grow by 5.9% annually to $20.13.
SNA has underperformed the broader markets in 2024, with shares down 11.1% on a YTD basis compared to the S&P 500 Index's ($SPX) 16.1% gain and the S&P 500 Industrial Sector SPDR's (XLI) 6.7% returns over the same period.
Snap-on faced a significant downturn in the second month of this year, with shares dropping 9.7% to a three-month low, driven by lackluster U.S. sales in its Snap-on Tools Group. Despite solid overall sales and exceeding Q4 earnings expectations, concerns over the decline of domestic sales caused investor unease and a substantial drop in stock price.
In addition, the stock dipped 7.7% on Apr. 18 after reporting stagnant revenue in Q1, which can be attributed to reduced spending by U.S. repair technicians on tools due to higher prices, particularly affecting sales of smaller wrenches and ratchets.
Analysts' consensus rating on Snap-on stock is cautious, with a "Hold" rating overall. Out of 11 analysts covering the stock, opinions include two "Strong Buys," one "Moderate Buy," seven "Holds," and one "Moderate Sell."
This configuration is slightly less bullish than three months ago, with three analysts suggesting a "Strong Buy." The average analyst price target for SNA is $298.67, suggesting a potential upside of 16.3% from current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
