Jabin Bastian
2 min read
Professional tools and equipment manufacturer Snap-on (NYSE:SNA) will be announcing earnings results this Thursday before market open. Here’s what to expect.
Snap-on beat analysts’ revenue expectations last quarter, reporting revenues of $1.33 billion, up 4.2% year on year. It was a satisfactory quarter for the company, with a narrow beat of analysts’ EPS estimates.
Is Snap-on a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Snap-on’s revenue to grow 3.2% year on year, in line with the 3.6% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Snap-on has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Snap-on’s peers in the industrial machinery segment, some have already reported their Q3 results, giving us a hint as to what we can expect. GE Aerospace delivered year-on-year revenue growth of 17.5%, beating analysts’ expectations by 3.3%, and 3M reported revenues up 4.2%, in line with consensus estimates.
Read our full analysis of GE Aerospace’s results here and 3M’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the industrial machinery stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5.1% on average over the last month. Snap-on’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $412.67 (compared to the current share price of $366.69).
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