The 10-second takeaway
For the quarter ended Jan. 1 (Q4), Snap-on met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased significantly.
Margins improved across the board.
Snap-on reported revenue of $736.6 million. The two analysts polled by S&P Capital IQ hoped for a top line of $739.6 million. Sales were 7.5% higher than the prior-year quarter's $696.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $1.27. The four earnings estimates compiled by S&P Capital IQ forecast $1.18 per share. GAAP EPS of $1.27 for Q4 were 28% higher than the prior-year quarter's $0.99 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 46.4%, 10 basis points better than the prior-year quarter. Operating margin was 16.3%, 200 basis points better than the prior-year quarter. Net margin was 9.6%, 150 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $736.7 million. On the bottom line, the average EPS estimate is $1.16.
Next year's average estimate for revenue is $3.01 billion. The average EPS estimate is $4.89.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 197 members out of 214 rating the stock outperform, and 17 members rating it underperform. Among 81 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 76 give Snap-on a green thumbs-up, and five 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 $68.38.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.