Core Insights - Snap-on Inc. reported fourth-quarter 2024 results with revenues and earnings exceeding Zacks Consensus Estimates, showing year-over-year growth driven by operations in critical industries and repair shop owners [1][2][4] Financial Performance - Earnings per share reached $4.82, surpassing the Zacks Consensus Estimate of $4.80, and improved by 1.5% from $4.75 in the same quarter last year [2] - Net sales increased by 0.2% year over year to $1.199 billion, exceeding the Zacks Consensus Estimate of $1.189 billion, attributed to a 0.2% rise in organic sales and $2.1 million from acquisitions, partially offset by $2 million from unfavorable foreign currency translation [4] - Gross profit rose 3.2% year over year to $596.1 million, with gross margin expanding by 140 basis points to 49.7%, compared to an expected gross margin of 49.1% [5] - Operating earnings before financial services totaled $265.2 million, up 2.8% year over year, with operating earnings as a percentage of sales expanding by 50 basis points to 22.1% [6] - Consolidated operating earnings, including financial services, were $331.9 million, reflecting a 1.9% year-over-year increase, with operating earnings as a percentage of sales expanding by 30 basis points to 25.5% [8] Segment Analysis - Sales in the Commercial & Industrial Group improved by 4.2% year over year to $379.2 million, driven by a 3.9% rise in organic sales [9] - The Tools Group segment experienced a sales decline of 1.3% year over year to $506.6 million, primarily due to a 1.4% drop in organic sales, offset by a $0.6 million positive impact from foreign currency [10] - Sales in the Repair Systems & Information Group increased by 1.3% year over year to $456.6 million, with organic sales growth of 1.6% [11] - The Financial Services business saw revenues rise by 3.4% year over year to $100.5 million [12] Financial Snapshot - Snap-on ended 2024 with cash and cash equivalents of $1.36 billion and shareholders' equity of $5.4 billion, with a projected capital expenditure of $100 million for 2025 [13] Future Outlook - Management anticipates resilience in markets and operations against uncertainties, expecting progress in 2025 by leveraging capabilities in automotive repair and expanding the customer base [14]

Financial Data and Key Metrics Changes - Overall sales for Q4 2024 were $1,198.7 million, up 0.2% both as reported and organically, marking a return to positive territory [9][50] - Gross margin improved to 49.7%, an increase of 140 basis points from 48.3% last year [10][51] - Operating income (OpCo OI) margin reached 22.1%, up 50 basis points, representing an all-time high for the fourth quarter [10][48] - Earnings per share (EPS) for the quarter was $4.82, up from $4.75 recorded last year [10][53] Business Line Data and Key Metrics Changes - **Commercial and Industrial (C&I)**: Sales of $379.2 million, up 3.9% organically, with operating earnings of $63.5 million, an increase of 17.4% [26][56] - **Tools Group**: Quarterly sales of $506.6 million, down 1.4% organically, with operating earnings of $106.9 million, down 4.1% [32][58] - **Repair System Information (RS&I)**: Sales of $456.6 million, up 1.6% organically, with operating earnings of $121.4 million, an increase of 7.1% [40][62] Market Data and Key Metrics Changes - The vehicle repair market remains robust, driven by the increasing complexity of modern vehicles and an aging car park averaging 12.6 years [12][13] - Sales in critical industries showed positive trends, with gains in aviation and general industries, although mixed results were noted across different regions [21][22] Company Strategy and Development Direction - The company is focused on leveraging its Snap-on value creation process, emphasizing safety, quality, customer protection, innovation, and rapid continuous improvement [24][78] - There is a strategic pivot towards quick payback items in response to customer preferences, particularly in the Tools Group [19][32] - The company aims to expand its position in the vehicle repair market by enhancing its product offerings and maintaining strong customer connections [24][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the vehicle repair market despite ongoing macroeconomic uncertainties [7][74] - The company anticipates continued growth opportunities in both auto repair and critical industries, supported by innovative product development [23][76] - Management highlighted the importance of adapting to customer preferences and maintaining operational strength amid market turbulence [19][34] Other Important Information - Financial services revenue increased to $100.5 million, up 3.4% from the previous year, although operating earnings in this segment decreased slightly [63] - The company reported a year-end cash position of $1.36 billion, reflecting strong cash flow from operations [69] Q&A Session Summary Question: Can you discuss the confidence at the shop level? - Management noted that while confidence in vehicle repair remains high, technicians are cautious due to cash flow concerns and macroeconomic uncertainties [86][90] Question: Are you fully pivoted in making the products you want? - Management indicated progress in the pivot, with a narrowing gap in sales decline, suggesting a positive trajectory [95][96] Question: Can you provide external sales figures for C&I and RS&I? - External sales for RS&I were noted to be stronger, while C&I external sales were approximately half of RS&I's figures [100][101] Question: What is driving the decline in originations? - The decline is primarily attributed to lower sales of big-ticket items, particularly tool storage, as customers prefer quick payback items [106][110] Question: Can you elaborate on the strength in specialty torque? - Management confirmed that specialty torque is a focus area for investment and growth, with recent acquisitions supporting this strategy [115][116]

Snap-On (SNA) came out with quarterly earnings of $4.82 per share, beating the Zacks Consensus Estimate of $4.80 per share. This compares to earnings of $4.75 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 0.42%. A quarter ago, it was expected that this tool and diagnostic equipment maker would post earnings of $4.58 per share when it actually produced earnings of $4.70, delivering a surprise of 2.62%.Over the last four quart ...

Exhibit 99 Snap-on Announces Fourth Quarter and Full Year 2024 Results Diluted EPS of $4.82 for the quarter compares to $4.75 in Q4 2023; Operating margin before financial services in Q4 2024 improves 50 basis points to 22.1%; Sales of $1,198.7 million in the quarter compares to $1,196.6 million last year Operating earnings of $63.5 million in the period compared to $54.1 million in 2023. The operating margin (operating earnings as a percentage of segment sales) improved 180 basis points to 16.7% from 14.9% ...

Core Viewpoint - Snap-On (SNA) is expected to report quarterly earnings of $4.80 per share, a 1.1% increase year-over-year, with revenues projected at $1.19 billion, reflecting a 0.7% decrease compared to the same period last year [1]. Earnings Estimates - The consensus EPS estimate has remained unchanged over the past 30 days, indicating analysts have not revised their projections during this period [2]. - Revisions to earnings projections are crucial for predicting investor behavior and are linked to short-term stock price performance [3]. Revenue Projections - Analysts project 'Net Sales- Commercial & Industrial Group' to reach $365.91 million, a 0.6% increase year-over-year [5]. - 'Net Sales- Repair Systems & Information Group' is estimated at $449.34 million, indicating a 0.3% decrease year-over-year [5]. - 'Net Sales- Snap-on Tools Group' is forecasted to be $510.98 million, reflecting a 0.5% decrease year-over-year [5]. Operating Earnings Estimates - 'Operating earnings / (losses)- Financial services' is expected to be $69.39 million, up from $67.90 million in the same quarter last year [6]. - 'Operating earnings / (losses)- Commercial & Industrial Group' is projected at $57.40 million, compared to $54.10 million in the same quarter last year [6]. - 'Operating earnings / (losses)- Snap-on Tools Group' is estimated at $113.10 million, slightly up from $111 million in the same quarter last year [7]. - 'Operating earnings / (losses)- Repair Systems & Information Group' is forecasted at $115.81 million, compared to $113.30 million in the same quarter last year [7]. Stock Performance - Over the past month, Snap-On shares have increased by 5.2%, outperforming the Zacks S&P 500 composite, which saw a 1% change [8]. - Snap-On holds a Zacks Rank 3 (Hold), suggesting its performance will likely align with the overall market in the near term [8].

Snap-on Incorporated (SNA) prepares to announce its fourth-quarter 2024 earnings results on Feb. 6, before the opening bell. The Zacks Consensus Estimate for revenues is $1.2 billion, which indicates a drop of 0.7% from the year-ago quarter’s level.The consensus estimate for quarterly earnings has been stable over the past 30 days at $4.77 per share and indicates an increase of 0.4% from the year-earlier quarter’s number. The company has an average trailing four-quarter earnings surprise of 1.6%. It deliver ...

Snap-on Incorporated (SNA) stock has been doing well for a while, recording an increase of 24.5% in a year. This growth comfortably outpaces the broader Consumer Discretionary sector’s return of 13.7% and the Zacks Tools - Handheld industry‘s growth of 11.6% in the same period.Currently priced at $345.60, Snap-on stock is trading at a 7.6% to its 52-week high of $373.90, reached on Nov. 27. However, it is trading at a 36.6% premium to its 52-week low mark.Analyzing Snap-on’s Growth EffortsSNA has been progr ...

Snap-On Incorporated (SNA) is trading at a notably low price-to-earnings (P/E) multiple, below the Zacks Tools Handheld industry and broader Consumer Discretionary averages. SNA's forward 12-month P/E ratio is 17.16X, lower than the industry average of 17.47X and the sector average of 18.97X.SNA Stock P/E PerformanceImage Source: Zacks Investment ResearchThe stock is undervalued compared with its industry peers, offering compelling value to investors looking for exposure to the retail apparel sector.SNA has ...

Snap-on Incorporated (SNA) stock has jumped 28.2% in the past six months. This growth comfortably has outpaced the broader Consumer Discretionary sector’s return of 12.2% and the Zacks Tools - Handheld industry’s rally of 10.7% in the same period. SNA shares also surpassed the S&P 500 index’s appreciation of 8.4% in the six months.Currently priced at $337.67, Snap-on stock is trading at 9.7% to its 52-week high of $373.90, reached on Nov. 27. However, it is trading at a 33.5% premium to its 52-week low mark ...

Snap-on Incorporated (SNA) has experienced a strong surge in its stock price, rising 31.5% over the past three months, significantly outperforming the industry’s growth of 17.2%. This impressive performance can be attributed to the company’s effective value-creation plan and successful cost-saving initiatives, which have helped it outperform the broader sector, which has gained 18.5% during the same period.Image Source: Zacks Investment ResearchClosing at $366.88 yesterday, SNA stock is moving toward its 52 ...