Snap-on Earnings Preview

Motley Fool Staff
Updated

Investors are on the edges of their seats, hoping that Snap-on (NYS: SNA) will top analyst expectations for the fifth consecutive quarter. The company will unveil its latest earnings on Thursday, Oct. 20. Snap-on is a global innovator, manufacturer and marketer of tools, diagnostics, equipment, software, and service solutions.

What analysts say:

  • Buy, sell, or hold?: Analysts are very bullish on this stock, unanimously backing it as a buy. Snap-on's rating hasn't changed over the past three months.

  • Revenue Forecasts: On average, analysts predict $720 million in revenue this quarter. That would represent a rise of 10.2% from the year-ago quarter.

  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $1.01 per share. Estimates range from $0.96 to $1.07.

What our community says:
CAPS All-Stars are solidly behind the stock with 91.5% giving it an "outperform" rating. The community at large agrees with the All-Stars, with 92% awarding it a rating of "outperform." Fools have embraced Snap-on, though the message boards have been quiet lately with only 87 posts in the past 30 days. Snap-on has a bullish CAPS rating of five out of five stars that is about on par with the Fool community assessment.

Management:
Snap-on's profit has risen year over year by an average of 66.5% over the past five quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q2

Q1

Q4

Q3

Gross Margin

47.5%

47.7%

45.6%

45.7%

Operating Margin

17.7%

13.9%

13.5%

12.5%

Net Margin

10.3%

7.8%

8.1%

6.9%

For all our Snap-on-specific analysis, including earnings and beyond, add Snap-on to My Watchlist.

At the time thisarticle was published Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement