The 10-second takeaway
For the quarter ended March 30 (Q1), Snap-on met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. GAAP earnings per share increased significantly.
Margins increased across the board.
Snap-on logged revenue of $741.7 million. The five analysts polled by S&P Capital IQ predicted a top line of $751.8 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 $1.40. The six earnings estimates compiled by S&P Capital IQ averaged $1.34 per share. GAAP EPS of $1.40 for Q1 were 16% higher than the prior-year quarter's $1.21 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 49.3%, 120 basis points better than the prior-year quarter. Operating margin was 17.6%, 140 basis points better than the prior-year quarter. Net margin was 10.5%, 130 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $771.3 million. On the bottom line, the average EPS estimate is $1.45.
Next year's average estimate for revenue is $3.05 billion. The average EPS estimate is $5.65.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 198 members out of 213 rating the stock outperform, and 15 members rating it underperform. Among 74 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 72 give Snap-on a green thumbs-up, and two 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 $86.40.
Looking for alternatives to Snap-on? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add Snap-on to My Watchlist.