The 10-second takeaway
For the quarter ended June 29 (Q2), Snap-on met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share grew significantly.
Margins expanded across the board.
Snap-on logged revenue of $764.1 million. The four analysts polled by S&P Capital IQ anticipated revenue of $766.7 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 $1.50. The five earnings estimates compiled by S&P Capital IQ averaged $1.45 per share. GAAP EPS of $1.50 for Q2 were 15% higher than the prior-year quarter's $1.30 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 49.9%, 40 basis points better than the prior-year quarter. Operating margin was 18.4%, 30 basis points better than the prior-year quarter. Net margin was 10.9%, 110 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $747.5 million. On the bottom line, the average EPS estimate is $1.38.
Next year's average estimate for revenue is $3.05 billion. The average EPS estimate is $5.67.
The stock has a three-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 75 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 72 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 outperform, with an average price target of $95.00.
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