Snap-on Inc. (NYSE: SNA) reported a 35% jump in earnings for the fourth quarter helped by lower costs and expenses despite a drop in the revenue. The bottom line came in line with the analysts’ expectations while the top line missed consensus estimates.
Net income climbed 35% to $175 million and earnings soared 38% to $3.09 per share. Excluding the legal settlement in 2018 as well as the legal and tax charges in 2017, earnings increased 13% to $3.03 per share.
Net sales declined 2.3% to $952.5 million due to a 0.6% decrease in organic sales and unfavorable foreign currency translation.
Snap-on expects to make continued progress in 2019 along its defined runways for coherent growth, leveraging capabilities already demonstrated in the automotive repair arena. In this pursuit, Snap-on expects capital expenditures in 2019 to be in a range of $90 million to $100 million. The effective income tax rate for the full year 2019 is predicted to be comparable to its 2018 effective tax rate of 24%.
For the fourth quarter, sales from the Commercial & Industrial Group segment rose 0.6% reflecting a 3.5% organic sales gain and acquisition-related sales, partially offset by unfavorable foreign currency translation. Snap-on Tools Group segment sales declined 0.4% as the higher sales in the US franchise operations was more than offset by unfavorable foreign currency translation.
Repair Systems & Information Group segment sales dropped 4.7% due to lower sales to OEM dealerships and reduced sales of undercar equipment as well as unfavorable foreign currency translation.
Despite near-term challenges in various environments, the company continues to see clear progress on a number of its runways for growth and improvement including the Commercial & Industrial Group extending its penetration of critical industries, the building of its activity in emerging markets like India, and the continuing recovery in its US van channel.
Shares of Snap-on ended Wednesday’s regular session down 0.22% at $165.59 on the NYSE. The stock has fallen 0.89% in the past year while it has risen over 4% in the past three months.
Listen to publicly listed companies’ earnings conference calls along with the edited closed caption text.
Most Popular
STZ Earnings: All you need to know about Constellation Brands’ Q2 2025 earnings results
Constellation Brands, Inc. (NYSE: STZ) reported its second quarter 2025 earnings results today. Net sales grew 3% year-over-year to $2.91 billion. Comparable sales growth was also 3%. Net loss attributable
Domino’s may report mixed Q3 results amid weakness in international business
The financial performance of Domino’s Pizza, Inc. (NYSE: DPZ) has been broadly stable in the recent past despite the inflation-induced strain on consumer’s spending power. While sales benefitted from its
What to look for when Delta Air Lines (DAL) reports Q3 2024 earnings results
Shares of Delta Air Lines (NYSE: DAL) were down over 2% on Wednesday. The stock has gained 14% over the past one month. The airline is scheduled to report its
