Core Insights - Snap-on Inc. reported first-quarter 2025 results that missed both revenue and earnings estimates, with a decline in both metrics compared to the previous year [1][2] - The company faced challenges due to economic uncertainty, leading to mixed results, although it achieved record operating margins in certain segments [1] Financial Performance - Earnings per share were $4.51, missing the Zacks Consensus Estimate of $4.81, and declined 5.1% from $4.75 in the same quarter last year [2] - Net sales decreased 3.5% year over year to $1.141 billion, missing the Zacks Consensus Estimate of $1.196 billion, attributed to a 2.3% dip in organic sales and $13.9 million from unfavorable foreign currency translation [4] - Gross profit fell 3.1% year over year to $578.5 million, while gross margin expanded by 20 basis points to 50.7% [5] - Operating earnings before financial services totaled $243.1 million, down 10.3% year over year, with operating earnings as a percentage of sales contracting 160 basis points to 21.3% [6] - Consolidated operating earnings, including financial services, were $313.4 million, down 7.6% year over year, with operating earnings as a percentage of sales contracting 130 basis points to 25.2% [7] Segment Analysis - Sales in the Commercial & Industrial Group decreased 4.4% year over year to $343.9 million, impacted by a 2.9% organic decline and $5.6 million from unfavorable foreign currency exchange [8] - The Tools Group segment's sales declined 7.4% year over year to $462.9 million, driven by a 6.8% organic sales decline and $3.6 million from unfavorable foreign currency translation [9] - Sales in the Repair Systems & Information Group improved 2.6% year over year to $475.9 million, with organic sales growth of 3.7%, despite unfavorable currency impacts of $4.9 million [10] - The Financial Services business saw revenues rise 2.5% year over year to $102.1 million [11] Financial Snapshot - As of the end of the first quarter of 2025, Snap-on had cash and cash equivalents of $1.43 billion and shareholders' equity of $5.5 billion [12] - The company anticipates capital expenditures of $100 million for 2025 [12] Future Outlook - Management expects resilience in markets and operations against uncertainties, with anticipated progress in growth areas for 2025 [13] - The company plans to leverage capabilities in automotive repair and expand its customer base across critical industries [13] - An effective tax rate of 22-23% is expected for 2025 [13]

Quarterly Financial Review First Quarter 2025 Q1-2025 Quarterly Review © 2025 Snap-on Incorporated Q1-2025 Quarterly Review © 2025 Snap-on Incorporated Consolidated Results Cautionary Statement Q1-2025 Quarterly Review © 2025 Snap-on Incorporated 3 These slides should be read in conjunction with comments from the April 17, 2025 conference call. The financial statement information included herein is unaudited. Statements made during the April 17, 2025 conference call and/or information included in this prese ...

Company Performance - Snap-On reported quarterly earnings of $4.51 per share, missing the Zacks Consensus Estimate of $4.81 per share, and down from $4.75 per share a year ago, representing an earnings surprise of -6.24% [1] - The company posted revenues of $1.14 billion for the quarter, missing the Zacks Consensus Estimate by 4.59%, and down from $1.18 billion year-over-year [2] - Over the last four quarters, Snap-On has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Stock Outlook - Snap-On shares have lost about 2.2% since the beginning of the year, while the S&P 500 has declined by 10.3% [3] - The current consensus EPS estimate for the coming quarter is $5.08 on revenues of $1.22 billion, and for the current fiscal year, it is $19.79 on revenues of $4.85 billion [7] Industry Context - The Tools - Handheld industry, to which Snap-On belongs, is currently in the top 36% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Snap-On's stock performance [5]

Financial Performance - Net sales for Q1 2025 were $1,141.1 million, a decrease of $41.2 million, or 3.5%, from 2024 levels, with an organic decline of $27.3 million, or 2.3%[4] - Operating earnings before financial services were $243.1 million, or 21.3% of net sales, compared to $270.9 million, or 22.9% of net sales in the previous year[4] - Consolidated operating earnings for the quarter were $313.4 million, or 25.2% of revenues, down from $339.2 million, or 26.5% of revenues in 2024[4] - Net earnings for the quarter were $240.5 million, or $4.51 per diluted share, compared to $263.5 million, or $4.91 per diluted share in 2024[4] - Net earnings for the three months ended March 29, 2025, were $246.7 million, a decrease of 8.8% compared to $269.6 million for the same period in 2024[24] - Operating earnings before financial services decreased to $243.1 million in Q1 2025, down from $270.9 million in Q1 2024, reflecting a decline of 10.3%[29] - The company reported a gross profit of $578.5 million for the three months ended March 29, 2025, down from $596.7 million in the same period last year, a decrease of 3.4%[29] Revenue Segments - Financial services revenue increased to $102.1 million from $99.6 million in 2024, with operating earnings rising to $70.3 million from $68.3 million[4] - The Repair Systems & Information Group segment saw sales increase by $12.1 million, or 3.7%, to $475.9 million, driven by higher activity with OEM dealerships[8] - The Snap-on Tools Group segment reported a sales decrease of $33.6 million, or 6.8%, to $462.9 million, primarily due to lower activity in the U.S.[7] - Financial services revenue for the three months ended March 29, 2025, was $102.1 million, compared to $99.6 million in the same period last year, representing a growth of 2.5%[29] Expenses and Liabilities - Corporate expenses increased to $24.6 million from $14.7 million in the previous year, which included a benefit from legal payments[10] - Total current liabilities rose to $999.9 million in March 2025, up from $961.5 million in December 2024, indicating an increase of 4.0%[22] - Total liabilities increased to $1,303.9 million from $1,270.4 million, marking a growth of 2.6%[32] Assets and Equity - Total assets increased to $8,069.0 million in March 2025, up from $7,896.8 million in December 2024, representing a growth of 2.18%[22] - Total current assets grew to $3,427.5 million, compared to $3,282.5 million, reflecting a rise of 4.4%[32] - Total shareholders' equity attributable to Snap-on Incorporated increased to $5,520.8 million in March 2025, up from $5,394.1 million in December 2024, an increase of 2.34%[22] - Total shareholders' equity attributable to Snap-on reached $5,520.8 million, up from $5,394.1 million, showing an increase of 2.3%[32] Cash Flow and Dividends - Cash and cash equivalents at the end of the period increased to $1,434.9 million, compared to $1,360.5 million at the beginning of the year, marking a rise of 5.5%[24] - Cash dividends paid increased to $112.2 million in Q1 2025, compared to $98.2 million in Q1 2024, reflecting a rise of 14.0%[24] - The company’s net cash provided by operating activities was $298.5 million for the three months ended March 29, 2025, down from $348.7 million in the same period in 2024, a decrease of 14.4%[24] Tax and Capital Expenditures - The effective income tax rate for Q1 2025 was 22.2%, consistent with the previous year[4] - The company expects capital expenditures in 2025 to approximate $100 million, with $22.9 million incurred in the first quarter[11] Inventory and Receivables - Trade and other accounts receivable – net increased to $851.4 million from $815.0 million, a growth of 4.5%[32] - Inventories – net rose to $961.2 million, compared to $943.4 million, indicating an increase of 1.8%[32] Other Financial Metrics - Cash and cash equivalents rose to $1,434.7 million, up from $1,360.4 million, indicating an increase of 5.4%[32] - Long-term debt and intersegment long-term debt remained stable at approximately $2,002.0 million[32] - The company reported a slight increase in accrued benefits to $72.8 million from $67.2 million, reflecting an increase of 8.3%[32] - Goodwill increased to $1,077.7 million from $1,056.8 million, representing a growth of 2.0%[32]

Group 1: Zacks Premium and Style Scores - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1] - The Zacks Style Scores are complementary indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the next 30 days [2][3] Group 2: Style Score Categories - The Value Score focuses on identifying undervalued stocks by analyzing ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] - The Growth Score assesses a company's financial strength and future outlook by examining projected and historical earnings, sales, and cash flow [4] - The Momentum Score identifies optimal times to invest based on price trends and earnings estimate changes [5] - The VGM Score combines the three Style Scores to highlight stocks with attractive value, strong growth forecasts, and promising momentum [6] Group 3: Zacks Rank and Stock Selection - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize returns [9] - Stocks with a 4 (Sell) or 5 (Strong Sell) rating, even with high Style Scores, are likely to have declining earnings forecasts and increased risk of price drops [10] Group 4: Company Spotlight - Snap-On Incorporated - Snap-On Incorporated, based in Kenosha, WI, is a global provider of professional tools and equipment for various industrial users, including vehicle service centers and OEMs [11] - Snap-On has a Zacks Rank of 3 (Hold) and a VGM Score of B, with a Momentum Style Score of A, indicating a 2.4% increase in shares over the past four weeks [12] - The company has seen a positive revision in earnings estimates for fiscal 2025, with the Zacks Consensus Estimate rising to $19.79 per share and an average earnings surprise of 1.1% [12][13]

In its upcoming report, Snap-On (SNA) is predicted by Wall Street analysts to post quarterly earnings of $4.81 per share, reflecting an increase of 1.3% compared to the same period last year. Revenues are forecasted to be $1.2 billion, representing a year-over-year increase of 1.2%.The current level reflects an upward revision of 0.2% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projecti ...

Snap-on Incorporated (SNA) prepares to announce its first-quarter 2025 earnings results on April 17, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $1.2 billion, which indicates an increase of 1.4% from the year-ago quarter’s reported level.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The consensus estimate for quarterly earnings has been unchanged in the past 30 days at $4.82 per share, indicating an increase of 1.5% from the year-earlier quarter ...

Snap-on Incorporated (SNA) stock seems to be in the limelight for a while, with shares rising 17.7%, comfortably outperforming the broader Consumer Discretionary sector’s gain of 2.9% and the Zacks Tools - Handheld industry, which rose 5.5% in the past six months. SNA’s shares have also surpassed the S&P 500 index’s drop of 1.4% in the six-month period.The stock seems to be in good shape, thanks to its solid business strategies. The company has been benefiting from its value-creation processes and Rapid Con ...

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Core Insights - Snap-on Incorporated (SNA) is enhancing its value-creation processes through Rapid Continuous Improvement (RCI) initiatives and strategic measures, leading to improved safety, service quality, customer satisfaction, and innovation [1][2][3] Group 1: Growth Strategies - The company is focused on increasing efficiencies and savings through RCI initiatives and cost-reduction actions, aiming to drive workforce productivity and improve manufacturing and supply chain efficiencies [2][4] - Snap-on is enhancing its franchise network and relationships with repair shop owners while expanding into critical industries in emerging markets [3] - Management is investing in new products and increasing brand awareness globally, particularly through innovative hardware and a proprietary comprehensive database [5] Group 2: Market Performance - The vehicle repair market is expected to remain strong, with new hand tools launched to improve customer connection and encouraging sales in the specialty torque business [6] - Despite growth in certain areas, the Tools Group segment is experiencing softness due to lower activity in U.S. operations and rising cost inflation from raw material expenses [7][8] Group 3: Financial Outlook - Snap-on stock is currently trading at a price/earnings ratio of 17.09, higher than the industry average of 16.91 and its five-year median of 14.84 [11] - The stock has gained 24.1% over the past six months, outperforming the industry's growth of 11.9% [12] - The Zacks Consensus Estimate predicts a rise in sales and earnings per share (EPS) for 2025, with increases of 2.9% and 1.3% year over year, respectively [14]