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Snap-on (SNA) to Post Q2 Earnings: What Should You Know?
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Snap-on Incorporated (SNA - Free Report) is slated to release its second-quarter 2024 results on Jul 18, before market open. The company is likely to record top and bottom-line growth when it posts second-quarter results.
The Zacks Consensus Estimate for quarterly earnings is pegged at $4.94 per share, suggesting growth of 1.02% from the year-ago quarter’s reported figure. The consensus mark has been unchanged in the past 30 days. The consensus estimate for quarterly revenues is pegged at $1.2 billion, indicating a rise of 0.5% from the year-ago quarter’s actual.
In the last reported quarter, the company posted an earnings surprise of 1.9%. SNA has a trailing four-quarter earnings surprise of 3.8%, on average.
Snap-on has been benefiting from a continued positive business momentum and contributions from the company’s Value Creation plan. The company’s business model is focused on enhancing value-creation processes, which improves safety, quality of service, customer satisfaction and innovation. Its growth strategy focuses on three critical areas, namely enhancing the franchise network, improving relationships with repair shop owners and managers, and expanding critical industries in emerging markets. These attributes have been contributing to the company’s quarterly performance, which is expected to have continued in the to-be-reported quarter.
Moreover, Snap-on is on track with the Rapid Continuous Improvement (RCI) process and other cost-reduction initiatives. The RCI process is designed to enhance organizational effectiveness and minimize costs, beside aiding Snap-on to boost sales and margins, by generating savings.
Savings from the RCI initiative reflect gains from continued productivity and process improvement plans. Management intends to boost customer services, and enhance manufacturing and supply-chain capabilities through the RCI initiatives and further investments. Additionally, Snap-on’s ability to innovate bodes well. The company has been investing in new products and increasing brand awareness across the world.
In the to-be-reported quarter, higher sales volume, pricing actions, lower material and other costs, as well as gains from the company's RCI initiatives, are expected to have boosted margins. Additionally, SNA is likely to have benefited from robust business trends across its operating segments.
Our model estimates sales growth of 1.8% for Commercial & Industrial Group, and 2.9% for Repair Systems & Information Group for the second quarter. It estimates a 0.5% decline in the Tools Group.
We expect year-over-year consolidated organic revenue growth of 1.3% for the to-be-reported quarter, driven by organic sales growth of 1.3% in the Commercial & Industrial Group, and 1.9% in the Repair Systems & Information Group, offset by a 0.6% decline in the Tools Group.
However, Snap-on has been witnessing ongoing challenges due to the macroeconomic environment, including inflationary pressures and other headwinds. Rising cost inflation, stemming from higher raw material expenses and other costs, has been hurting SNA’s performance. Additionally, the company is facing delayed recovery in China. We expect these headwinds to continue affecting the company’s profitability in the near term.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Snap-on this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Snap-on has an Earnings ESP of 0.00% and a Zacks Rank of 3 at present.
Stocks Poised to Beat Earnings Estimates
Here are some companies, which according to our model, have the right combination of elements to post an earnings beat:
Adidas (ADDYY - Free Report) currently has an Earnings ESP of +8.43% and a Zacks Rank #3. ADDYY is likely to register top and bottom-line growth when it reports second-quarter 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $6 billion, suggesting 3.8% growth from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for ADDYY’s second-quarter earnings is pegged at 42 cents a share, indicating a 61.5% rise from the year-ago quarter’s actual. The consensus mark has risen significantly from 20 cents in the past 30 days.
MGM Resorts International (MGM - Free Report) currently has an Earnings ESP of +14.70% and a Zacks Rank of 3. MGM is likely to register top and bottom-line growth when it reports second-quarter 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $4.2 billion, suggesting 6% growth from the figure reported in the year-ago quarter.
The consensus estimate for MGM Resorts’ second-quarter earnings is pegged at 66 cents a share, implying an 11.9% increase from the year-earlier quarter. The consensus mark has moved down by a penny in the past seven days.
Disney (DIS - Free Report) currently has an Earnings ESP of +0.91% and a Zacks Rank #3. DIS is likely to register top and bottom-line growth when it reports third-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $22.9 billion, suggesting a 2.5% increase from the figure reported in the year-ago quarter.
The consensus estimate for DIS’s fiscal third-quarter earnings is pegged at $1.19 per share, suggesting 15.5% growth from the year-ago quarter’s actual. The consensus mark has been unchanged in the past 30 days.
Image: Shutterstock
Snap-on (SNA) to Post Q2 Earnings: What Should You Know?
Snap-on Incorporated (SNA - Free Report) is slated to release its second-quarter 2024 results on Jul 18, before market open. The company is likely to record top and bottom-line growth when it posts second-quarter results.
The Zacks Consensus Estimate for quarterly earnings is pegged at $4.94 per share, suggesting growth of 1.02% from the year-ago quarter’s reported figure. The consensus mark has been unchanged in the past 30 days. The consensus estimate for quarterly revenues is pegged at $1.2 billion, indicating a rise of 0.5% from the year-ago quarter’s actual.
In the last reported quarter, the company posted an earnings surprise of 1.9%. SNA has a trailing four-quarter earnings surprise of 3.8%, on average.
Snap-On Incorporated Price and EPS Surprise
Snap-On Incorporated price-eps-surprise | Snap-On Incorporated Quote
Key Factors to Note
Snap-on has been benefiting from a continued positive business momentum and contributions from the company’s Value Creation plan. The company’s business model is focused on enhancing value-creation processes, which improves safety, quality of service, customer satisfaction and innovation. Its growth strategy focuses on three critical areas, namely enhancing the franchise network, improving relationships with repair shop owners and managers, and expanding critical industries in emerging markets. These attributes have been contributing to the company’s quarterly performance, which is expected to have continued in the to-be-reported quarter.
Moreover, Snap-on is on track with the Rapid Continuous Improvement (RCI) process and other cost-reduction initiatives. The RCI process is designed to enhance organizational effectiveness and minimize costs, beside aiding Snap-on to boost sales and margins, by generating savings.
Savings from the RCI initiative reflect gains from continued productivity and process improvement plans. Management intends to boost customer services, and enhance manufacturing and supply-chain capabilities through the RCI initiatives and further investments. Additionally, Snap-on’s ability to innovate bodes well. The company has been investing in new products and increasing brand awareness across the world.
In the to-be-reported quarter, higher sales volume, pricing actions, lower material and other costs, as well as gains from the company's RCI initiatives, are expected to have boosted margins. Additionally, SNA is likely to have benefited from robust business trends across its operating segments.
Our model estimates sales growth of 1.8% for Commercial & Industrial Group, and 2.9% for Repair Systems & Information Group for the second quarter. It estimates a 0.5% decline in the Tools Group.
We expect year-over-year consolidated organic revenue growth of 1.3% for the to-be-reported quarter, driven by organic sales growth of 1.3% in the Commercial & Industrial Group, and 1.9% in the Repair Systems & Information Group, offset by a 0.6% decline in the Tools Group.
However, Snap-on has been witnessing ongoing challenges due to the macroeconomic environment, including inflationary pressures and other headwinds. Rising cost inflation, stemming from higher raw material expenses and other costs, has been hurting SNA’s performance. Additionally, the company is facing delayed recovery in China. We expect these headwinds to continue affecting the company’s profitability in the near term.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Snap-on this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Snap-on has an Earnings ESP of 0.00% and a Zacks Rank of 3 at present.
Stocks Poised to Beat Earnings Estimates
Here are some companies, which according to our model, have the right combination of elements to post an earnings beat:
Adidas (ADDYY - Free Report) currently has an Earnings ESP of +8.43% and a Zacks Rank #3. ADDYY is likely to register top and bottom-line growth when it reports second-quarter 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $6 billion, suggesting 3.8% growth from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for ADDYY’s second-quarter earnings is pegged at 42 cents a share, indicating a 61.5% rise from the year-ago quarter’s actual. The consensus mark has risen significantly from 20 cents in the past 30 days.
MGM Resorts International (MGM - Free Report) currently has an Earnings ESP of +14.70% and a Zacks Rank of 3. MGM is likely to register top and bottom-line growth when it reports second-quarter 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $4.2 billion, suggesting 6% growth from the figure reported in the year-ago quarter.
The consensus estimate for MGM Resorts’ second-quarter earnings is pegged at 66 cents a share, implying an 11.9% increase from the year-earlier quarter. The consensus mark has moved down by a penny in the past seven days.
Disney (DIS - Free Report) currently has an Earnings ESP of +0.91% and a Zacks Rank #3. DIS is likely to register top and bottom-line growth when it reports third-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $22.9 billion, suggesting a 2.5% increase from the figure reported in the year-ago quarter.
The consensus estimate for DIS’s fiscal third-quarter earnings is pegged at $1.19 per share, suggesting 15.5% growth from the year-ago quarter’s actual. The consensus mark has been unchanged in the past 30 days.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.