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Snap-on Incorporated (SNA), headquartered in Kenosha, Wisconsin, is a global leader in professional tools, equipment, and diagnostic solutions, empowering professionals to excel in critical industries. With a market cap of $18.3 billion, Snap-on leverages innovative technologies to deliver precision-engineered products and services that drive efficiency and reliability across automotive, aerospace, and industrial sectors. The company is set to release its Q4 earnings on Thursday, Feb. 13.
Ahead of the event, analysts expect SNA to report a profit of $4.77 per share on a diluted basis, up marginally from $4.75 per share in the year-ago quarter. The company has exceeded Wall Street's adjusted EPS projections in three of the past four quarters while missing on one other occasion.
The company reported an adjusted EPS of $4.70 in the last reported quarter, surpassing the consensus estimates by 2.6%. The earnings beat estimates on improved margins and operating efficiency.
For fiscal 2024, analysts expect Snap-on to report EPS of $19.05, up 1.6% from $18.76 in fiscal 2023. Its EPS is expected to rise 5.1% year over year to $20.02 in fiscal 2025.
Snap-on’s shares have gained 23.1% over the past 52 weeks, underperforming the broader S&P 500 Index's ($SPX) 26.5% gains and the Industrial Select Sector SPDR Fund's (XLI) 25% returns over the same time frame.
Snap-on has recently lagged behind the broader market and peers due to declining organic revenue and challenges in key markets. However, shares jumped nearly 10% after its Q3 earnings results on Oct. 17, driven by robust margins and improved free cash flow. The company posted $1.15 billion in revenue, slightly below estimates and down 8.5% year over year, while organic revenue fell 3.1%. Despite these challenges, management highlighted the resilience of operations amid ongoing macroeconomic uncertainties.
Analysts’ consensus opinion on SNA stock is cautious, with a “Hold” rating overall. Of 11 analysts covering the stock, two advise a “Strong Buy” rating, one gives a “Moderate Buy,” seven recommend a “Hold,” and one suggests a “Moderate Sell.” SNA’s average analyst price target is $344.67, which indicates that the stock trades at a premium.
