NYSE$SNA

Snap-on Incorporated · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Net sales increased by 5.2% and diluted EPS increased by 8.9% compared to Q3 2022.

Snap-on Incorporated reported a positive third quarter in 2023, with sales reaching $1,159.3 million, a 5.2% increase from Q3 2022. Diluted EPS rose to $4.51, an 8.9% gain from the previous year. The company's performance reflects advancement in sales, profitability, and earnings amid a changing environment.

  • Net sales increased by 5.2% compared to Q3 2022, with organic sales up by 4.7%.
  • Operating margin before financial services improved by 90 basis points to 21.2%.
  • Diluted EPS reached $4.51, representing an increase of 8.9% from Q3 2022.
  • Consolidated operating earnings were $314.6 million, or 25.1% of revenues.

Headline financials

Total Revenue

$1.25B

Previous: $1.19B+5.4%
EPS (adj)

$4.51

Previous: $4.14+8.9%
Organic Sales Growth

4.7%

No prior period
Operating Margin (Pre-FS)

21.2%

No prior period
Effective Tax Rate

22.6%

Previous: 21.6%+4.6%
Capital Expenditures

-$73.9M

Previous: -$61.5M-20.2%
Free Cash Flow

$169M

Previous: $162M+4.2%
Net Income

$243M

Previous: $224M+8.6%
Operating Income

$315M

Previous: $290M+8.5%
Gross Profit

$1.21B

Previous: $1.16B+4.2%
Cash & Equivalents

$959M

Previous: $759M+26.3%
Total Assets

$7.3B

Previous: $6.84B+6.9%
Stock-Based Comp

$11M

Previous: $8.1M+35.8%

Revenue & EPS history

Snap-on · Revenue · Quarterly

$1.25B

Q3 2023+5.4%vs Q3 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Snap-on · $1.41B total across 4 segments · Q3 2023

  • Snap-on Tools
    $515M+3.8%
  • Repair Systems & Info
    $432M+4.3%
  • Commercial & Industrial
    $366M+2.7%
  • Financial Services
    $94.9M+8.7%

Forward guidance

Snap-on anticipates ongoing progress along its growth initiatives, expanding its professional customer base in automotive repair and adjacent markets. Capital expenditures for 2023 are projected to be approximately $100 million, and the full-year effective income tax rate is expected to be around 23%.

Tailwinds

  • Ongoing progress along defined runways for coherent growth.
  • Leveraging capabilities demonstrated 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.
  • Full-year 2023 effective income tax rate will approximate 23%.

Headwinds

  • Uncertainties of the current environment.
  • Lower sales in the segment’s Asia Pacific operations for Commercial & Industrial Group segment.
  • Lower activity with OEM dealerships for Repair Systems & Information Group segment.
  • Corporate expenses increased from $26.4 million to $31.2 million.
  • Maintaining and fortifying our decisive advantages by leveraging our Snap-on Value Creation Processes.

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 Q3 2023

Historical avgQ3 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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