|
|
|
|
|||||
|
|
|
Snap-on Inc. SNA has reported second-quarter 2025 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. Meanwhile, earnings declined from the year-ago period and revenues were in line with the prior-year quarter.
Snap-on’s second-quarter results reflect a return to U.S. Tools Group sales growth, resilient gross margins and solid enterprise-level operating earnings despite ongoing uncertainty and trade turbulence. The company gained momentum by focusing on quick payback items aligned with customer preferences and continued to advance with OEM dealerships, independent shops and in the precision-torque segment. Backed by its market-centric manufacturing strategy, deep capabilities and Snap-on Value Creation processes, the company remains confident in its ability to navigate current challenges and pursue sustained growth.
Snap-on’s earnings of $4.72 per share surpassed the Zacks Consensus Estimate of $4.61. The figure declined 3.9% from adjusted earnings of $4.91 in the year-ago quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Snap-On Incorporated price-consensus-eps-surprise-chart | Snap-On Incorporated Quote
Net sales totaled $1.179 billion, flat with the prior year and exceeding the Zacks Consensus Estimate of $1.154 billion. An organic sales decline of 0.7% ($8.6 million) was fully offset by favorable foreign currency translation. Despite the top-line pressure, the company demonstrated strength through solid execution and continued momentum in key growth areas.
The gross profit of $595.5 million fell 0.3% year over year, whereas the gross margin contracted 10 basis points (bps) year over year to 50.5%. Our model expected a gross margin of 50.2%, down 40 bps from the year-ago quarter.
Snap-on’s operating earnings before financial services totaled $259.1 million, down 7.6% year over year. As a percentage of sales, operating earnings before financial services contracted 180 bps to 22% in the second quarter. The Financial Services unit's operating earnings were $68.2 million, down 2.8% year over year.
Consolidated operating earnings (including financial services) were $327.3 million, down 6.6% year over year. As a percentage of sales, operating earnings contracted 190 bps year over year to 25.5%.
Sales in the Commercial & Industrial Group decreased 6.5% from the year-ago quarter to $347.8 million due to a 7.6% organic decline, partially offset by $4.5 million in favorable foreign currency translation. The lower sales were mainly due to weaker performance in the Asia Pacific and European hand tools businesses and reduced activity with critical industry customers. For the second quarter, we expected sales of $357.1 million for the segment.
The Tools Group segment’s sales gained 1.9% year over year to $491 million. We estimated sales of $462.7 million for the segment. The increase resulted from an organic sales gain of 1.6%, driven by stronger demand in the United States, along with a $1.2 million benefit from favorable foreign currency translation. International sales remained essentially flat during the quarter.
Sales in Repair Systems & Information Group improved 3% year over year to $468.6 million, with organic sales growth of 2.3% and a $3.1 million boost from favorable foreign currency translation. Organic sales grew, driven by increased activity with OEM dealerships, and higher sales of diagnostic and repair information products to independent repair shops, though partially offset by lower undercar equipment volumes. Our estimate for sales from this segment was $468.4 million.
The Financial Services business’ revenues rose 1.2% year over year to $101.7 million. Our estimate for sales from this segment was $102.3 million.
Snap-on ended the second quarter of 2025 with cash and cash equivalents of $1.46 billion, with shareholders’ equity (before non-controlling interest) of $5.7 billion. The company expects a capital expenditure of $100 million for full-year 2025.
Management expects SNA’s markets and operations to have considerable resilience against the uncertainties of the operating landscape. For full-year 2025, the company expects to continue advancing its core growth strategies, leveraging its established strengths in automotive repair while expanding into adjacent markets, new geographies and critical industries where reliability is essential. SNA expects an effective tax rate of 22-23% for 2025.
The Zacks Rank #3 (Hold) company’s shares have gained 7.9% in the past three months compared with the industry's 4.7% growth.
We have highlighted three better-ranked stocks, namely and adidas AG ADDYY, Revolve Group, Inc. RVLV and Duluth Holdings DLTH.
adidas is a leading brand in the sporting goods market with strong positions in footwear, apparel and hardware. The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for adidas’ current fiscal-year sales and EPS indicates growth of 13.4% and 89.1%, respectively, from the year-ago period’s reported figures. ADDYY has a trailing four-quarter negative earnings surprise of 48%, on average.
Revolve Group operates as an online fashion retailer for millennial and Generation Z consumers in the United States and internationally. RVLV currently carries a Zacks Rank #2. RVLV has a trailing four-quarter earnings surprise of 63.4%, on average.
The Zacks Consensus Estimate for Revolve Group’s current financial year’s sales growth of 5.5% and earnings implies a decline of 43.5%, respectively, from the year-ago reported numbers.
Duluth Holdings provides casual wear, workwear and accessories for men and women. The company currently carries a Zacks Rank #2. Duluth Holdings has a trailing four-quarter negative earnings surprise of 21%, on average.
The Zacks Consensus Estimate for DLTH’s current financial-year EPS indicates growth of 18.3% from the year-ago figure.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).
| 2 hours | |
| 5 hours | |
| 8 hours | |
| 8 hours | |
| 10 hours | |
| 11 hours | |
| 11 hours | |
| Jul-16 | |
| Jul-15 | |
| Jul-14 | |
| Jul-11 | |
| Jul-09 | |
| Jul-07 | |
| Jun-30 | |
| Jun-27 |
Join thousands of traders who make more informed decisions with our premium features. Real-time quotes, advanced visualizations, backtesting, and much more.
Learn more about FINVIZ*Elite