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Snap-On (SNA) Reliance on International Sales: What Investors Need to Know
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Have you looked into how Snap-On (SNA - Free Report) performed internationally during the quarter ending June 2024? Considering the widespread global presence of this tool and diagnostic equipment maker, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.
The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.
Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.
While analyzing SNA's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.
For the quarter, the company's total revenue amounted to $1.18 billion, experiencing a decline of 1% year over year. Next, we'll explore the breakdown of SNA's international revenue to understand the importance of its overseas business operations.
Exploring SNA's International Revenue Patterns
During the quarter, Other International contributed $118.9 million in revenue, making up 10.1% of the total revenue. When compared to the consensus estimate of $121.83 million, this meant a surprise of -2.41%. Looking back, Other International contributed $115.6 million, or 9.8%, in the previous quarter, and $123.7 million, or 10.4%, in the same quarter of the previous year.
Europe generated $185.4 million in revenues for the company in the last quarter, constituting 15.7% of the total. This represented a surprise of +3.63% compared to the $178.91 million projected by Wall Street analysts. Comparatively, in the previous quarter, Europe accounted for $182.7 million (15.5%), and in the year-ago quarter, it contributed $178.1 million (15%) to the total revenue.
Anticipated Revenues in Overseas Markets
Wall Street analysts expect Snap-On to report a total revenue of $1.16 billion in the current fiscal quarter, which suggests an increase of 0.2% from the prior-year quarter. Revenue shares from Other International and Europe are predicted to be 10.3% and 15.2%, corresponding to amounts of $119.34 million and $176.15 million, respectively.
For the full year, the company is expected to generate $4.73 billion in total revenue, up 0% from the previous year. Revenues from Other International and Europe are expected to constitute 10.1% ($478.62 million) and 15.3% ($721.26 million) of the total, respectively.
Key Takeaways
Relying on international markets for revenues, Snap-On faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.
In an era of growing international interdependencies and escalating geopolitical disputes, Wall Street analysts are vigilant in tracking these trends for businesses with a global reach, in order to refine their predictions of earnings. It should be noted, however, that a multitude of other elements, such as a company's domestic position, also play a significant role in shaping the earnings forecasts.
At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short -term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.
The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.
Assessing Snap-On's Stock Price Movement in Recent Times
The stock has increased by 1.6% over the past month compared to the 0.4% rise of the Zacks S&P 500 composite. Meanwhile, the Zacks Consumer Discretionary sector, which includes Snap-On, has decreased 0.9% during this time frame. Over the past three months, the company's shares have experienced a gain of 0.1% relative to the S&P 500's 11.3% increase. Throughout this period, the sector overall has witnessed a 3.1% increase.
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Snap-On (SNA) Reliance on International Sales: What Investors Need to Know
Have you looked into how Snap-On (SNA - Free Report) performed internationally during the quarter ending June 2024? Considering the widespread global presence of this tool and diagnostic equipment maker, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.
The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.
Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.
While analyzing SNA's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.
For the quarter, the company's total revenue amounted to $1.18 billion, experiencing a decline of 1% year over year. Next, we'll explore the breakdown of SNA's international revenue to understand the importance of its overseas business operations.
Exploring SNA's International Revenue Patterns
During the quarter, Other International contributed $118.9 million in revenue, making up 10.1% of the total revenue. When compared to the consensus estimate of $121.83 million, this meant a surprise of -2.41%. Looking back, Other International contributed $115.6 million, or 9.8%, in the previous quarter, and $123.7 million, or 10.4%, in the same quarter of the previous year.
Europe generated $185.4 million in revenues for the company in the last quarter, constituting 15.7% of the total. This represented a surprise of +3.63% compared to the $178.91 million projected by Wall Street analysts. Comparatively, in the previous quarter, Europe accounted for $182.7 million (15.5%), and in the year-ago quarter, it contributed $178.1 million (15%) to the total revenue.
Anticipated Revenues in Overseas Markets
Wall Street analysts expect Snap-On to report a total revenue of $1.16 billion in the current fiscal quarter, which suggests an increase of 0.2% from the prior-year quarter. Revenue shares from Other International and Europe are predicted to be 10.3% and 15.2%, corresponding to amounts of $119.34 million and $176.15 million, respectively.
For the full year, the company is expected to generate $4.73 billion in total revenue, up 0% from the previous year. Revenues from Other International and Europe are expected to constitute 10.1% ($478.62 million) and 15.3% ($721.26 million) of the total, respectively.
Key Takeaways
Relying on international markets for revenues, Snap-On faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.
In an era of growing international interdependencies and escalating geopolitical disputes, Wall Street analysts are vigilant in tracking these trends for businesses with a global reach, in order to refine their predictions of earnings. It should be noted, however, that a multitude of other elements, such as a company's domestic position, also play a significant role in shaping the earnings forecasts.
At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short -term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.
The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.
Snap-On currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Assessing Snap-On's Stock Price Movement in Recent Times
The stock has increased by 1.6% over the past month compared to the 0.4% rise of the Zacks S&P 500 composite. Meanwhile, the Zacks Consumer Discretionary sector, which includes Snap-On, has decreased 0.9% during this time frame. Over the past three months, the company's shares have experienced a gain of 0.1% relative to the S&P 500's 11.3% increase. Throughout this period, the sector overall has witnessed a 3.1% increase.