Snap-On (SNA) Earnings & Revenues Beat Estimates in Q4

Headquartered in Kenosha, WI, Snap-on Incorporated SNA is a global provider of professional tools, equipment, and related solutions for technicians, vehicle service centers, original equipment manufacturers and other industrial users. The company divides its operations in four segments: Snap-on Tools Group, Commercial & Industrial Group, Repair Systems & Information Group and Financial Services segment.

Snap-on's overarching business model, which aims to maximize value-creation by focusing on areas like safety, quality of service, customer satisfaction and innovation, has emerged as a tried and tested growth driver. In this regard, the rapid improvement process, designed to improve organizational efficiency and slash costs, including working capital requirements, has helped Snap-on improve sales, margins and savings over the past few quarters.

Despite these positives, ongoing softness in industrial markets has significantly affected client spending, marring the company's prospects. Also, sluggish oil and gas market pose as concerns for the company.

However, SNA has an outstanding earnings track record, and has delivered an average positive earnings surprise of 4.1% in the last four trailing quarters, beating estimates all through.

Currently, SNA has a Zacks Rank #2 (Buy), but that could change following its fourth-quarter 2016 earnings report which has just released. You can see the complete list of today's Zacks #1 Rank stocks here.

We have highlighted some of the key details from the just-released announcement below:

Earnings: SNA beat on earnings. Net earnings came in at $2.47 per share, notably higher than the Zacks Consensus Estimate of $2.41.

Snap-On Incorporated Price and EPS Surprise

Snap-On Incorporated Price and EPS Surprise | Snap-On Incorporated Quote

Revenue: Net sales of $889.8 million topped the Zacks Consensus Estimate of $884 million.

Key Stats: Despite a challenging macroeconomic environment, SNA witnessed an 11.3% rise in earnings per share, in addition to remarkable operating margin expansion and decent organic sales growth. Going forward, the company expects its value-creation processes will lead to improvements in safety, quality of service, customer satisfaction and innovation.

Stock Price: SNA shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on this SNA earnings report later!

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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