- Snap-On’s net sales were reported at $1.14 billion, marking a 3.5% decrease compared to last year, and below the estimated $1.2 billion.
- The Commercial & Industrial Group’s net sales reached $343.9 million, a 4.4% decline year-over-year, falling short of the predicted $366.9 million.
- Snap-on Tools Group saw net sales of $462.9 million, which is a 7.4% decrease from the previous year and below the estimate of $501.7 million.
- Repair Systems & Information Group posted a net sales increase of 2.6% year-over-year, amounting to $475.9 million, surpassing the estimate of $461.1 million.
- Financial Services reported a revenue of $102.1 million, up 2.5% from last year, exceeding the estimate of $100.5 million.
- The earnings per share (EPS) dropped to $4.51 from $4.91 last year.
- Snap-on expects the full-year 2025 effective income tax rate to be between 22% and 23%.
- The current analyst recommendations include 4 buys, 7 holds, and 3 sells.
Snap On Inc on Smartkarma
Analyst coverage of Snap-On Inc on Smartkarma reveals contrasting viewpoints from top independent analysts. Baptista Research‘s report, “Snap-on Incorporated: How This Premium Tool Maker Is Adapting to Industry Shifts!“, highlights the company’s fourth-quarter and full-year 2024 results. While sales saw a modest organic growth of 0.2%, profitability was strong with gross margins up by 140 basis points and opco margins hitting an all-time high.
In contrast, Value Investors Club recommends shorting Snap-On Inc (“SNA”) in their report “Snap-On Inc (SNA) – Monday, Jul 29, 2024” due to recent earnings disappointments. They project a 15-20% return in the next twelve months as 2025 earnings are expected to reset lower. Competition intensifying and challenges in the Tools business are cited as reasons for their bearish stance.
A look at Snap On Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Snap On Inc has a positive long-term outlook. With solid scores in Growth, Resilience, and Momentum, the company is positioned well for future success. The company continues to show strength in its product offerings and market presence, which bodes well for its growth potential. Additionally, its ability to adapt to changing market conditions and maintain momentum suggests a level of stability that investors may find attractive.
As a leader in developing tools and equipment solutions for the automotive service industry, Snap On Inc has a strong foundation for continued success. The company’s focus on innovation and meeting the needs of professional service technicians and shop owners positions it well for sustained growth. With respectable scores in Value and Dividend, Snap On Inc offers investors a balanced opportunity for both value and income potential in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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