Tools maker Snap-On Q3 sales up 3.8%, beat estimates

Reuters
Oct 16
Tools maker Snap-On Q3 sales up 3.8%, beat estimates

Overview

  • Snap-On Q3 sales rise 3.8% to $1.19 bln, beating analyst expectations

  • Diluted EPS of $5.02 beats estimates, includes $0.31 benefit from legal settlement

  • Pretax profit beats estimates, reflecting strong operational performance

Outlook

  • Snap-on expects 2025 capital expenditures to be around $100 mln

  • Company anticipates 2025 effective income tax rate between 22% and 23%

  • Snap-on sees resilience against current market uncertainties

Result Drivers

  • ORGANIC SALES GROWTH - Snap-On reports 3.0% organic sales growth, contributing to overall revenue increase

  • REPAIR SYSTEMS & INFORMATION GROUP - Segment sales rose 8.9% organically due to higher activity with OEM dealerships and independent repair shops

  • COMMERCIAL & INDUSTRIAL GROUP - Segment faced 0.8% organic sales decline due to reductions in Asia Pacific business

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Beat

$1.19 bln

$1.15 bln (8 Analysts)

Q3 EPS

Beat

$5.02

$4.63 (8 Analysts)

Q3 Net Income

$271.80 mln

Q3 Pretax Profit

Beat

$349.30 mln

$326.03 mln (6 Analysts)

Q3 Adjusted Operating Earnings

$278.50 mln

Q3 Gross Profit

$605.90 mln

Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the industrial machinery & equipment peer group is "buy."

  • Wall Street's median 12-month price target for Snap-On Inc is $352.50, about 5.6% above its October 15 closing price of $332.59

  • The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nBw9YclBca

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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