Snap-on Reports Mixed Q4 Results with Earnings Beat but Revenue Miss
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy SNA?
Source: seekingalpha
- Revenue Performance: Snap-on Inc. reported Q4 revenue of $1.23 billion, falling short of the $1.24 billion consensus estimate despite a year-over-year increase of 2.8%, indicating increased customer activity in critical industries but disappointing investors, leading to a 1.8% drop in premarket trading.
- Earnings Beat: The company posted earnings of $4.94 per share, exceeding Wall Street's expectation of $4.92, with net income rising from $258.1 million a year ago to $260.7 million, demonstrating stability in profitability even as revenue missed expectations.
- Segment Analysis: The Commercial & Industrial Group saw a 2.8% sales increase driven by demand from critical industries and higher activity in power tools, while Snap-On Tools Group experienced a slight decline due to softer U.S. demand, highlighting market segmentation trends.
- Future Outlook: Snap-on anticipates continued resilience in its markets for 2026, planning capital expenditures of approximately $100 million and expecting an effective tax rate between 22% and 23%, reflecting the company's confidence in future growth.
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Analyst Views on SNA
Wall Street analysts forecast SNA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SNA is 385.00 USD with a low forecast of 365.00 USD and a high forecast of 405.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
2 Buy
2 Hold
1 Sell
Hold
Current: 370.800
Low
365.00
Averages
385.00
High
405.00
Current: 370.800
Low
365.00
Averages
385.00
High
405.00
About SNA
Snap-on Incorporated is a manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions. The Company's Commercial and Industrial Group segment serves a range of industrial and commercial customers worldwide, including customers in the aerospace, natural resources, government, power generation, transportation and technical education market segments, through direct and distributor channels. Its Snap-on Tools Group segment consists of operations primarily serving vehicle service and repair technicians through the Company’s mobile tool distribution channel. Its Repair Systems and Information Group segment consists of business operations serving other professional vehicle repair customers worldwide, owners and managers of independent repair shops and original equipment manufacturer dealerships, through direct and distributor channels. Its Financial Services segment consists of the business operations of its finance subsidiaries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Snap-on Reports Steady Q4 Growth Amid Challenges
- Sales Growth: Snap-on's Q4 sales reached $1.2319 billion, up 2.8% year-over-year, demonstrating resilience in a turbulent environment and indicating that ongoing investments in product and brand advantages are yielding results.
- Profitability Improvement: Operating earnings were $339.6 million, a 2.3% increase, with earnings per share at $4.94, up $0.12 from last year, reflecting strong performance in core markets and effective cost control measures.
- Product Innovation: The launch of the Nano-Axcess cordless lineup and ControlTech Plus torque wrench highlights ongoing innovation, as demand for smaller tools and accessories rebounds despite challenges in the tool storage category, indicating a market appetite for new products.
- Market Outlook: Management anticipates capital expenditures of approximately $100 million for 2026, and despite rising material costs and macroeconomic uncertainties, remains optimistic about market resilience, emphasizing that continued investment in products will support future growth.
See More
Snap-on Exceeds Expectations in Q4 Performance
- Revenue Growth: Snap-on's total revenue for Q4 reached $1.34 billion, surpassing analysts' expectations of $1.23 billion, demonstrating the company's strong performance amid market challenges, particularly with a 1.4% organic sales gain and favorable foreign currency translation.
- Stable Profitability: Operating earnings stood at $339.6 million, or 25.3% of revenue, slightly down from $331.9 million last year, reflecting the company's resilience in maintaining profitability despite a volatile market environment.
- Segment Performance: The Commercial & Industrial Group saw a 2.8% sales increase to $398.1 million, although operating earnings declined due to increased sales in lower-margin businesses; conversely, the Repair Systems & Information Group experienced a 1.0% sales increase to $467.8 million, indicating varied performance across business lines.
- Future Outlook: Snap-on expects an effective income tax rate between 22% and 23% for 2026 and plans to invest approximately $100 million in its franchise network and critical industry expansions, aiming to enhance manufacturing and marketing capabilities to support future growth.
See More
Snap-on Reports Mixed Q4 Results with Earnings Beat but Revenue Miss
- Revenue Performance: Snap-on Inc. reported Q4 revenue of $1.23 billion, falling short of the $1.24 billion consensus estimate despite a year-over-year increase of 2.8%, indicating increased customer activity in critical industries but disappointing investors, leading to a 1.8% drop in premarket trading.
- Earnings Beat: The company posted earnings of $4.94 per share, exceeding Wall Street's expectation of $4.92, with net income rising from $258.1 million a year ago to $260.7 million, demonstrating stability in profitability even as revenue missed expectations.
- Segment Analysis: The Commercial & Industrial Group saw a 2.8% sales increase driven by demand from critical industries and higher activity in power tools, while Snap-On Tools Group experienced a slight decline due to softer U.S. demand, highlighting market segmentation trends.
- Future Outlook: Snap-on anticipates continued resilience in its markets for 2026, planning capital expenditures of approximately $100 million and expecting an effective tax rate between 22% and 23%, reflecting the company's confidence in future growth.
See More
Snap-On Q4 Earnings Beat Expectations
- Earnings Performance: Snap-On reported a Q4 GAAP EPS of $4.94, beating expectations by $0.02, indicating stable profitability despite a slight decline in overall revenue.
- Revenue Growth Weakness: Revenue increased by 2.5% year-over-year to $1.23 billion, yet fell short of expectations by $10 million, reflecting soft market demand that may impact future sales strategies.
- Organic Sales Slightly Up: The organic sales growth of 1.4% in Q4 suggests that the company maintains some growth momentum in its core business, despite a challenging market environment.
- Future Investment Plans: Snap-On projects capital expenditures to approximate $100 million in 2026, demonstrating confidence in future growth, while anticipating an effective income tax rate between 22% and 23% for 2026, indicating stable tax management.
See More
Snap-On Scheduled to Announce Q4 Earnings on February 5
- Earnings Announcement: Snap-On (SNA) is set to release its Q4 earnings on February 5 before the market opens, with consensus EPS estimated at $4.89 and revenue expected to reach $1.24 billion, reflecting a 3.4% year-over-year growth.
- Performance Analysis: Over the past year, Snap-On has exceeded EPS estimates 75% of the time, while revenue estimates have only been surpassed 25% of the time, indicating a stable earnings performance but challenges in revenue growth.
- Estimate Revisions: In the last three months, Snap-On's EPS estimates saw one upward revision and one downward revision, while revenue estimates experienced one upward revision and two downward revisions, highlighting market uncertainty regarding the company's future performance.
- Market Focus: Snap-On presented at Baird's 55th Annual Global Industrial Conference, where investor interest in its future performance and dividend returns remains high, particularly in the current economic climate.
See More
Key Highlights to Monitor This Week: Jobs Report, Amazon, Disney, Alphabet, Palantir, and More
Market Volatility: Last week saw increased volatility in equities, with the S&P 500 ending slightly up and the Nasdaq Composite slightly down after a steady interest rate announcement by the Federal Open Market Committee.
Microsoft's Earnings Impact: Microsoft experienced a significant drop of 10% in its stock value, resulting in a loss of $357 billion in market capitalization following a disappointing earnings report.
Silver Market Collapse: The silver market faced a dramatic decline, falling 31% in a single day, attributed to the nomination of hawkish Kevin Warsh as the next Fed Chair and a prior 50% increase in value this year.
Overall Economic Sentiment: The combination of these events reflects a turbulent economic sentiment, with investors reacting to both corporate earnings and shifts in monetary policy.
See More
Snap-on Reports Steady Q4 Growth Amid Challenges
- Sales Growth: Snap-on's Q4 sales reached $1.2319 billion, up 2.8% year-over-year, demonstrating resilience in a turbulent environment and indicating that ongoing investments in product and brand advantages are yielding results.
- Profitability Improvement: Operating earnings were $339.6 million, a 2.3% increase, with earnings per share at $4.94, up $0.12 from last year, reflecting strong performance in core markets and effective cost control measures.
- Product Innovation: The launch of the Nano-Axcess cordless lineup and ControlTech Plus torque wrench highlights ongoing innovation, as demand for smaller tools and accessories rebounds despite challenges in the tool storage category, indicating a market appetite for new products.
- Market Outlook: Management anticipates capital expenditures of approximately $100 million for 2026, and despite rising material costs and macroeconomic uncertainties, remains optimistic about market resilience, emphasizing that continued investment in products will support future growth.
See More
Snap-on Exceeds Expectations in Q4 Performance
- Revenue Growth: Snap-on's total revenue for Q4 reached $1.34 billion, surpassing analysts' expectations of $1.23 billion, demonstrating the company's strong performance amid market challenges, particularly with a 1.4% organic sales gain and favorable foreign currency translation.
- Stable Profitability: Operating earnings stood at $339.6 million, or 25.3% of revenue, slightly down from $331.9 million last year, reflecting the company's resilience in maintaining profitability despite a volatile market environment.
- Segment Performance: The Commercial & Industrial Group saw a 2.8% sales increase to $398.1 million, although operating earnings declined due to increased sales in lower-margin businesses; conversely, the Repair Systems & Information Group experienced a 1.0% sales increase to $467.8 million, indicating varied performance across business lines.
- Future Outlook: Snap-on expects an effective income tax rate between 22% and 23% for 2026 and plans to invest approximately $100 million in its franchise network and critical industry expansions, aiming to enhance manufacturing and marketing capabilities to support future growth.
See More
Snap-on Reports Mixed Q4 Results with Earnings Beat but Revenue Miss
- Revenue Performance: Snap-on Inc. reported Q4 revenue of $1.23 billion, falling short of the $1.24 billion consensus estimate despite a year-over-year increase of 2.8%, indicating increased customer activity in critical industries but disappointing investors, leading to a 1.8% drop in premarket trading.
- Earnings Beat: The company posted earnings of $4.94 per share, exceeding Wall Street's expectation of $4.92, with net income rising from $258.1 million a year ago to $260.7 million, demonstrating stability in profitability even as revenue missed expectations.
- Segment Analysis: The Commercial & Industrial Group saw a 2.8% sales increase driven by demand from critical industries and higher activity in power tools, while Snap-On Tools Group experienced a slight decline due to softer U.S. demand, highlighting market segmentation trends.
- Future Outlook: Snap-on anticipates continued resilience in its markets for 2026, planning capital expenditures of approximately $100 million and expecting an effective tax rate between 22% and 23%, reflecting the company's confidence in future growth.
See More
Snap-On Q4 Earnings Beat Expectations
- Earnings Performance: Snap-On reported a Q4 GAAP EPS of $4.94, beating expectations by $0.02, indicating stable profitability despite a slight decline in overall revenue.
- Revenue Growth Weakness: Revenue increased by 2.5% year-over-year to $1.23 billion, yet fell short of expectations by $10 million, reflecting soft market demand that may impact future sales strategies.
- Organic Sales Slightly Up: The organic sales growth of 1.4% in Q4 suggests that the company maintains some growth momentum in its core business, despite a challenging market environment.
- Future Investment Plans: Snap-On projects capital expenditures to approximate $100 million in 2026, demonstrating confidence in future growth, while anticipating an effective income tax rate between 22% and 23% for 2026, indicating stable tax management.
See More
Snap-On Scheduled to Announce Q4 Earnings on February 5
- Earnings Announcement: Snap-On (SNA) is set to release its Q4 earnings on February 5 before the market opens, with consensus EPS estimated at $4.89 and revenue expected to reach $1.24 billion, reflecting a 3.4% year-over-year growth.
- Performance Analysis: Over the past year, Snap-On has exceeded EPS estimates 75% of the time, while revenue estimates have only been surpassed 25% of the time, indicating a stable earnings performance but challenges in revenue growth.
- Estimate Revisions: In the last three months, Snap-On's EPS estimates saw one upward revision and one downward revision, while revenue estimates experienced one upward revision and two downward revisions, highlighting market uncertainty regarding the company's future performance.
- Market Focus: Snap-On presented at Baird's 55th Annual Global Industrial Conference, where investor interest in its future performance and dividend returns remains high, particularly in the current economic climate.
See More
Key Highlights to Monitor This Week: Jobs Report, Amazon, Disney, Alphabet, Palantir, and More
Market Volatility: Last week saw increased volatility in equities, with the S&P 500 ending slightly up and the Nasdaq Composite slightly down after a steady interest rate announcement by the Federal Open Market Committee.
Microsoft's Earnings Impact: Microsoft experienced a significant drop of 10% in its stock value, resulting in a loss of $357 billion in market capitalization following a disappointing earnings report.
Silver Market Collapse: The silver market faced a dramatic decline, falling 31% in a single day, attributed to the nomination of hawkish Kevin Warsh as the next Fed Chair and a prior 50% increase in value this year.
Overall Economic Sentiment: The combination of these events reflects a turbulent economic sentiment, with investors reacting to both corporate earnings and shifts in monetary policy.
See More
