NYSE$SNA

Snap-on Incorporated · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Snap-on's Q2 2023 performance was driven by broad enterprise strength, leading to sales, profitability, and earnings momentum.

Snap-on Incorporated reported a 4.8% increase in net sales, reaching $1,191.3 million, with organic sales up by 5.6%. Diluted EPS improved by 14.5% to $4.89, and the operating margin before financial services expanded by 160 basis points to 23.3%.

  • Net sales increased by 4.8% to $1,191.3 million, with organic sales growing by 5.6%.
  • Diluted EPS rose by 14.5% to $4.89 compared to Q2 2022.
  • Operating margin before financial services expanded by 160 basis points to 23.3%.
  • Financial Services revenue increased to $93.4 million, with operating earnings of $66.9 million.

Headline financials

Total Revenue

$1.28B

Previous: $1.22B+5.0%
EPS (adj)

$4.89

Previous: $4.27+14.5%
Organic Sales Growth

5.6%

No prior period
Operating Margin (Pre-FS)

23.3%

Previous: 21.7%+7.4%
Effective Tax Rate

22.9%

Previous: 23.8%-3.8%
Total Originations

$326M

Previous: $308M+6.1%
Capital Expenditures

-$48.8M

Previous: -$41.5M-17.6%
Free Cash Flow

$215M

Previous: $190M+13.3%
Net Income

$264M

Previous: $232M+14.0%
Operating Income

$344M

Previous: $312M+10.3%
Gross Profit

$1.26B

Previous: $1.21B+4.1%
Cash & Equivalents

$871M

Previous: $813M+7.2%
Total Assets

$7.23B

Previous: $6.86B+5.3%
Stock-Based Comp

$10.2M

Previous: $8.5M+20.0%

Revenue & EPS history

Snap-on · Revenue · Quarterly

$1.28B

Q2 2023+5%vs Q2 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Snap-on · $1.43B total across 4 segments · Q2 2023

  • Snap-on Tools
    $523M+0.5%
  • Repair Systems & Info
    $452M+8.4%
  • Commercial & Industrial
    $364M+1.4%
  • Financial Services
    $93.4M+8.1%

Forward guidance

Snap-on anticipates ongoing progress in 2023, leveraging its capabilities in automotive repair and expanding its professional customer base in adjacent markets and geographies, including critical industries. Capital expenditures for 2023 are projected to be approximately $100 million, and the full-year effective income tax rate is expected to be in the range of 23% to 24%.

Tailwinds

  • Continuing resilience against uncertainties in the current environment.
  • Ongoing progress along defined runways for coherent growth.
  • Leveraging capabilities in the automotive repair arena.
  • Developing and expanding its professional customer base.
  • Extending in critical industries, where the cost and penalties for failure can be high.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.6%

Avg return

Earnings day

-0.4%

Avg return

5 days after

+1.9%

Avg return

30 days after

55%

36 / 66 earnings

Positive

+11.4%

Q4 2013

Best reaction

-10.9%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.0%-1.3%-4.0%
Q4 2025-3.2%-1.4%-2.8%
Q3 2025+3.5%+4.0%-0.8%
Q2 2025+1.4%+1.5%+3.4%
Q1 2025-8.0%-9.2%-0.1%
Q4 2024-4.6%-5.3%-3.9%
Q3 2024+9.4%+8.5%+19.8%
Q2 2024-1.8%-0.3%+0.2%
Q1 2024-5.2%-4.3%-1.6%
Q4 2023-10.9%-11.0%+0.3%
Q3 2023+1.0%+1.5%+10.9%
Q2 2023-6.4%-7.2%-8.8%
Q1 2023+9.7%+7.5%+8.8%
Q4 2022+3.7%+1.6%-0.1%
Q3 2022-2.8%+2.1%+10.6%
Q2 2022+2.6%+3.9%+10.7%
Q1 2022-1.7%-3.0%-7.2%
Q4 2021+1.3%+0.4%-1.7%
Q3 2021-7.7%-9.8%-5.4%
Q2 2021+0.2%-1.6%-2.0%
Q1 2021+0.7%+1.1%+5.5%
Q4 2020+4.0%+6.8%+22.5%
Q3 2020+9.1%+2.0%+11.4%
Q2 2020-1.2%+2.0%+3.5%
Q1 2020-0.8%+1.2%+15.9%
Q4 2019-4.9%-5.0%-13.4%
Q3 2019-0.3%+2.9%+3.6%
Q2 2019-2.4%+0.7%-4.1%
Q1 2019+6.7%+8.5%+3.4%
Q4 2018-7.6%-6.0%-4.8%
Q3 2018-10.2%-11.0%-1.4%
Q2 2018+9.8%+4.7%+10.8%
Q1 2018+2.2%+1.8%+4.7%
Q4 2017-4.7%-5.4%-8.0%
Q3 2017+4.3%+5.7%+2.3%
Q2 2017-4.9%-4.9%-6.2%
Q1 2017+7.0%+6.8%+1.2%
Q4 2016-5.8%-7.5%-5.4%
Q3 2016+6.3%+5.1%+12.5%
Q2 2016-2.1%-2.4%-4.8%
Q1 2016-0.4%
Q4 2015-8.6%
Q3 2015+2.4%
Q2 2015-1.5%
Q1 2015+3.2%
Q4 2014+7.3%
Q3 2014+6.8%
Q2 2014+3.9%
Q1 2014+3.4%
Q4 2013+11.4%
Q3 2013+3.2%
Q2 2013+2.5%
Q1 2013-1.6%
Q4 2012-2.3%
Q3 2012+2.2%
Q2 2012+10.3%
Q1 2012+3.4%
Q4 2011+2.8%
Q3 2011+4.6%
Q2 2011-2.8%
Q4 2009+2.5%
Q1 2011+2.5%
Q3 2010+3.4%
Q4 2010-1.7%
Q2 2010-1.7%
Q1 2010+1.7%

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