Professional tools and equipment manufacturer Snap-on (NYSE: SNA) will be announcing earnings results this Thursday before market open. Here’s what to look for.
Snap-on beat analysts’ revenue expectations last quarter, reporting revenues of $1.34 billion, up 3.1% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ revenue estimates but a slight miss of analysts’ EBITDA estimates.
Is Snap-on a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Snap-on’s revenue to grow 2.7% year on year, a reversal from the 3% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Snap-on has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Snap-on’s peers in the industrial machinery segment, some have already reported their Q1 results, giving us a hint as to what we can expect. GE Aerospace delivered year-on-year revenue growth of 29%, beating analysts’ expectations by 8.3%, and Worthington reported revenues up 24.4%, topping estimates by 8.6%. Worthington traded down 4.6% following the results.
Read our full analysis of GE Aerospace’s results here and Worthington’s results here.
There has been positive sentiment among investors in the industrial machinery segment, with share prices up 11.2% on average over the last month. Snap-on is up 5.8% during the same time and is heading into earnings with an average analyst price target of $377.06 (compared to the current share price of $383.57).
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