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Snap-on Beats Analyst Estimates on EPS

By Seth Jayson - Updated Apr 10, 2017 at 1:51PM

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Just the facts, Fool.

Snap-on (NYSE: SNA) reported earnings on April 18. Here are the numbers you need to know.

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.

Revenue details
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 details
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.

Margin details
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.)

Looking ahead
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.

Investor sentiment
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.

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Stocks Mentioned

Snap-on Incorporated Stock Quote
Snap-on Incorporated
SNA
$222.90 (1.65%) $3.63

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