The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Snap-on met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share grew.
Margins grew across the board.
Snap-on booked revenue of $753.2 million. The five analysts polled by S&P Capital IQ expected to see a top line of $757.2 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $1.43. The five earnings estimates compiled by S&P Capital IQ predicted $1.36 per share. GAAP EPS of $1.43 for Q4 were 13% higher than the prior-year quarter's $1.27 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 47.9%, 100 basis points better than the prior-year quarter. Operating margin was 17.7%, 80 basis points better than the prior-year quarter. Net margin was 10.6%, 100 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $761.8 million. On the bottom line, the average EPS estimate is $1.36.
Next year's average estimate for revenue is $3.08 billion. The average EPS estimate is $5.66.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 199 members out of 215 rating the stock outperform, and 16 members rating it underperform. Among 79 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 76 give Snap-on a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Snap-on is hold, with an average price target of $81.75.
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