Snap-On (NYSE:SNA) Posts Quarterly Earnings Results, Beats Expectations By $0.08 EPS

Snap-On (NYSE:SNA) released its earnings results on Thursday. The company reported $4.94 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.86 by $0.08, FiscalAI reports. The firm had revenue of $1.23 billion during the quarter, compared to analyst estimates of $1.24 billion. Snap-On had a net margin of 21.08% and a return on equity of 17.71%. The business’s revenue was up 2.8% on a year-over-year basis. During the same quarter last year, the business earned $4.82 EPS.

Here are the key takeaways from Snap-On’s conference call:

• Snap-on reported Q4 sales of $1,231.9 million (up 2.8% as reported, 1.4% organic) and diluted EPS of $4.94, with consolidated operating earnings modestly higher year‑over‑year despite unfavorable FX and a 53rd‑week timing effect.
• Management highlighted durable end‑market demand — an average vehicle age of 12.8 years and rising repair complexity — which they say supports long‑term growth for diagnostics, tools, and RS&I software/data products.
• Tools Group volume was roughly flat but delivered a 150 bps improvement in gross margin as the business pivots to shorter‑payback, higher‑margin items (new impact sockets, storage configs) while continuing van‑network investments.
• C&I sales rose 5% to $398.1 million led by power tools, but operating margin fell to 15.2% (from 16.7%) due to higher material costs, a shift into lower‑margin businesses, and international/headwind effects including the U.S. government shutdown.
• Financial Services benefited from the extra fiscal week (≈$7.4M revenue), lifting OI, the company ended the year with ≈$1.62B cash and ~$2.5B finance receivables, maintained buybacks (227k shares, $80.4M) and ~$260M repurchase capacity while delinquencies modestly rose to 2.1%.

Snap-On Trading Down 2.3%

NYSE:SNA traded down $8.75 during trading hours on Thursday, reaching $374.16. 349,969 shares of the stock were exchanged, compared to its average volume of 313,843. The company has a quick ratio of 3.37, a current ratio of 4.40 and a debt-to-equity ratio of 0.20. Snap-On has a twelve month low of $289.81 and a twelve month high of $388.96. The company has a market capitalization of $19.46 billion, a price-to-earnings ratio of 19.59, a PEG ratio of 2.66 and a beta of 0.81. The business has a 50-day moving average of $355.76 and a two-hundred day moving average of $341.17.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on the company. Tigress Financial increased their target price on Snap-On from $395.00 to $405.00 and gave the stock a “buy” rating in a research note on Tuesday, October 21st. Roth Mkm reissued a “buy” rating and issued a $385.00 price target on shares of Snap-On in a research report on Friday, October 17th. Barrington Research restated an “outperform” rating and set a $350.00 price objective on shares of Snap-On in a research note on Wednesday, October 15th. Robert W. Baird set a $370.00 target price on Snap-On in a research note on Friday, January 30th. Finally, Weiss Ratings reissued a “buy (b)” rating on shares of Snap-On in a research report on Wednesday, January 21st. Five research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $365.83.

Insider Buying and Selling

In related news, VP Richard Thomas Miller sold 2,000 shares of the business’s stock in a transaction on Thursday, December 4th. The stock was sold at an average price of $348.27, for a total transaction of $696,540.00. Following the completion of the transaction, the vice president directly owned 4,158 shares of the company’s stock, valued at $1,448,106.66. The trade was a 32.48% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Aldo John Pagliari sold 6,779 shares of the stock in a transaction dated Thursday, December 11th. The shares were sold at an average price of $352.20, for a total value of $2,387,563.80. Following the completion of the sale, the chief financial officer directly owned 111,888 shares in the company, valued at $39,406,953.60. This represents a 5.71% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 40,036 shares of company stock valued at $13,710,988 in the last three months. 3.90% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of SNA. Ameriprise Financial Inc. raised its stake in Snap-On by 17.5% during the 2nd quarter. Ameriprise Financial Inc. now owns 800,946 shares of the company’s stock worth $249,073,000 after acquiring an additional 119,089 shares in the last quarter. Treasurer of the State of North Carolina grew its stake in Snap-On by 117.3% during the 2nd quarter. Treasurer of the State of North Carolina now owns 140,601 shares of the company’s stock worth $43,752,000 after buying an additional 75,900 shares during the last quarter. Tidal Investments LLC increased its position in Snap-On by 607.4% during the second quarter. Tidal Investments LLC now owns 74,753 shares of the company’s stock worth $23,262,000 after buying an additional 64,186 shares during the period. AQR Capital Management LLC lifted its stake in Snap-On by 27.2% in the third quarter. AQR Capital Management LLC now owns 276,162 shares of the company’s stock valued at $95,563,000 after buying an additional 59,019 shares during the last quarter. Finally, Squarepoint Ops LLC boosted its holdings in shares of Snap-On by 35.2% in the second quarter. Squarepoint Ops LLC now owns 158,260 shares of the company’s stock valued at $49,247,000 after acquiring an additional 41,237 shares during the period. Institutional investors and hedge funds own 84.88% of the company’s stock.

About Snap-On

Snap‑On Incorporated (NYSE: SNA) is a designer, manufacturer and marketer of tools, diagnostic equipment, repair information and shop equipment for professional users. The company’s product range includes hand and power tools, tool storage and cabinets, diagnostic scan tools and software, shop equipment such as lifts and tire changers, and specialized specialty tools for automotive, aviation, marine and industrial applications. Snap‑On also offers information and workflow solutions that combine diagnostic data, repair procedures and parts information to support professional technicians.

Founded in 1920 and headquartered in Kenosha, Wisconsin, Snap‑On has established a long history in the professional tools market.