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

Snap-On (NYSE:SNA) issued its earnings results on Thursday. The company reported $4.94 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.86 by $0.08, FiscalAI reports. The business had revenue of $1.23 billion during the quarter, compared to analysts’ expectations of $1.24 billion. Snap-On had a net margin of 21.08% and a return on equity of 17.71%. The company’s revenue for the quarter was up 2.8% on a year-over-year basis. During the same quarter in the prior year, the business posted $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 Stock Performance

Shares of NYSE:SNA traded down $12.58 during trading on Thursday, hitting $370.33. 405,003 shares of the stock traded hands, compared to its average volume of 315,864. The company has a fifty day moving average price of $355.76 and a two-hundred day moving average price of $341.17. Snap-On has a 52-week low of $289.81 and a 52-week high of $388.96. The company has a quick ratio of 3.37, a current ratio of 4.40 and a debt-to-equity ratio of 0.20. The company has a market cap of $19.26 billion, a price-to-earnings ratio of 19.44, a P/E/G ratio of 2.66 and a beta of 0.81.

Analyst Ratings Changes

SNA has been the subject of several research reports. Roth Mkm reissued a “buy” rating and issued a $385.00 target price on shares of Snap-On in a research note on Friday, October 17th. Weiss Ratings reissued a “buy (b)” rating on shares of Snap-On in a report on Wednesday, January 21st. Barrington Research reissued an “outperform” rating and issued a $350.00 price objective on shares of Snap-On in a report on Wednesday, October 15th. Wall Street Zen upgraded Snap-On from a “hold” rating to a “buy” rating in a research note on Saturday, October 18th. Finally, Robert W. Baird set a $370.00 price target on Snap-On in a report on Friday, January 30th. Five equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Snap-On has an average rating of “Moderate Buy” and a consensus target price of $365.83.

Insiders Place Their Bets

In related news, CEO Nicholas T. Pinchuk sold 22,607 shares of the stock in a transaction on Tuesday, December 2nd. The stock was sold at an average price of $339.15, for a total value of $7,667,164.05. Following the sale, the chief executive officer owned 826,364 shares in the company, valued at approximately $280,261,350.60. This represents a 2.66% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Richard Thomas Miller sold 2,000 shares of the stock in a transaction dated Thursday, December 4th. The shares were sold at an average price of $348.27, for a total transaction of $696,540.00. Following the completion of the sale, the vice president owned 4,158 shares of the company’s stock, valued at approximately $1,448,106.66. This trade represents a 32.48% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 40,036 shares of company stock worth $13,710,988 over the last 90 days. Corporate insiders own 3.90% of the company’s stock.

Institutional Investors Weigh In On Snap-On

Several institutional investors and hedge funds have recently added to or reduced their stakes in SNA. Ameriprise Financial Inc. boosted its position in shares of 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 purchasing an additional 119,089 shares in the last quarter. Treasurer of the State of North Carolina grew its holdings in shares of Snap-On by 117.3% during the second quarter. Treasurer of the State of North Carolina now owns 140,601 shares of the company’s stock worth $43,752,000 after purchasing an additional 75,900 shares during the last quarter. Tidal Investments LLC raised its stake in shares of Snap-On by 607.4% in the 2nd quarter. Tidal Investments LLC now owns 74,753 shares of the company’s stock valued at $23,262,000 after purchasing an additional 64,186 shares during the period. AQR Capital Management LLC lifted its holdings in shares of Snap-On by 27.2% during the third quarter. AQR Capital Management LLC now owns 276,162 shares of the company’s stock worth $95,563,000 after buying an additional 59,019 shares in the last quarter. Finally, Squarepoint Ops LLC grew its stake 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 worth $49,247,000 after purchasing an additional 41,237 shares during the last quarter. Hedge funds and other institutional investors 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.