The 10-second takeaway
For the quarter ended March 31 (Q1), 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 improved significantly.
Margins improved across the board.
Snap-on recorded revenue of $735.2 million. The four analysts polled by S&P Capital IQ hoped for a top line of $736.8 million on the same basis. GAAP reported sales were 7.5% higher than the prior-year quarter's $719.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.21. The five earnings estimates compiled by S&P Capital IQ predicted $1.16 per share. GAAP EPS of $1.21 for Q1 were 26% higher than the prior-year quarter's $0.96 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 48.1%, 10 basis points better than the prior-year quarter. Operating margin was 15.7%, 140 basis points better than the prior-year quarter. Net margin was 9.2%, 140 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $763.4 million. On the bottom line, the average EPS estimate is $1.25.
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 202 members out of 219 rating the stock outperform, and 17 members rating it underperform. Among 72 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 68 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 $69.13.
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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.
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