Snap-on (NYSE: SNA) reported earnings on Oct. 18. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Sep. 29 (Q3), Snap-on met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share increased.
Margins increased across the board.
Revenue details
Snap-on notched revenue of $711.6 million. The four analysts polled by S&P Capital IQ hoped for sales of $706.6 million on the same basis. GAAP reported sales were 3.0% higher than the prior-year quarter's $729.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $1.26. The five earnings estimates compiled by S&P Capital IQ predicted $1.23 per share. GAAP EPS of $1.26 for Q3 were 8.6% higher than the prior-year quarter's $1.16 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 49.0%, 100 basis points better than the prior-year quarter. Operating margin was 16.5%, 30 basis points better than the prior-year quarter. Net margin was 9.9%, 60 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $754.7 million. On the bottom line, the average EPS estimate is $1.36.
Next year's average estimate for revenue is $2.94 billion. The average EPS estimate is $5.09.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 195 members out of 212 rating the stock outperform, and 17 members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 65 give Snap-on a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Snap-on is outperform, with an average price target of $75.25.
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