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Snap-on Incorporated (SNA), valued at a market cap of $17.9 billion, is a leading manufacturer and marketer of high-end tools, equipment, diagnostics, and repair solutions for professional users in industries like automotive, aerospace, and industrial manufacturing. Founded in 1920 and headquartered in Kenosha, Wisconsin, the company operates through multiple segments, including Commercial & Industrial Group, Snap-on Tools Group, Repair Systems & Information Group, and Financial Services. The company is set to release its Q1 earnings on Thursday, Apr. 17.
Ahead of the event, analysts expect SNA to report a profit of $4.82 per share on a diluted basis, up 1.5% 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 onother occasion.
The company reported an adjusted EPS of $4.82 in the last reported quarter, surpassing the consensus estimate marginally, along with robust margins and improved free cash flow.
For fiscal 2025, analysts expect Snap-on to report EPS of $19.76, up 3% from $19.19 in fiscal 2024. Its EPS is expected to rise 7% year over year to $21.14 in fiscal 2026.
Snap-on’s shares have gained 11.9% over the past 52 weeks, outperforming the broader S&P 500 Index's ($SPX) 3.6% gains and the Industrial Select Sector SPDR Fund's (XLI) marginal returns over the same time frame.
Snap-on shares dipped more than 4% after reporting Q4 2024 results on Feb. 6, with revenue of $1.2 billion, slightly up from the prior year, surpassing expectations. Net income reached $258.1 million ($4.82 per share), surpassing expectations. The company improved its gross margin to 49.7% and operating margin to 22.1%, driven by cost efficiencies.
Analysts’ consensus opinion on SNA stock is cautiously upbeat, with a “Moderate Buy” rating overall. Of 11 analysts covering the stock, three advise a “Strong Buy” rating, one gives a “Moderate Buy,” six recommend a “Hold,” and one suggests a “Moderate Sell.”
SNA’s average analyst price target is $355.57, which indicates that the stock trades at a premium of 8.6% from the current market prices.
