Zacks: Brokerages Expect Snap-on Incorporated (NYSE:SNA) to Announce $3.65 EPS

Wall Street analysts forecast that Snap-on Incorporated (NYSE:SNA) will announce earnings of $3.65 per share for the current quarter, according to Zacks Investment Research. Three analysts have provided estimates for Snap-on’s earnings. The highest EPS estimate is $4.07 and the lowest is $3.07. Snap-on reported earnings per share of $3.84 during the same quarter last year, which would suggest a negative year over year growth rate of 4.9%. The firm is scheduled to report its next earnings report on Thursday, February 3rd.

Zacks’ EPS averages are an average based on a survey of analysts that cover Snap-on.

Snap-on (NYSE:SNA) last announced its quarterly earnings results on Thursday, October 21st. The company reported $3.57 earnings per share for the quarter, topping analysts’ consensus estimates of $3.35 by $0.22. Snap-on had a return on equity of 20.37% and a net margin of 19.10%. The company had revenue of $1.04 billion during the quarter, compared to analysts’ expectations of $1.01 billion. During the same quarter in the previous year, the firm earned $3.28 earnings per share. The business’s quarterly revenue was up 10.2% compared to the same quarter last year.

Several equities analysts recently weighed in on SNA shares. Tigress Financial boosted their price objective on Snap-on from $289.00 to $295.00 and gave the stock a “buy” rating in a research report on Friday, October 29th. Bank of America cut Snap-on from a “neutral” rating to an “underperform” rating and set a $240.00 price objective for the company. in a research report on Friday, September 17th. Zacks Investment Research raised Snap-on from a “hold” rating to a “buy” rating and set a $225.00 price objective for the company in a research report on Friday, October 22nd. Finally, Robert W. Baird reissued a “hold” rating and set a $240.00 price objective on shares of Snap-on in a research report on Thursday, July 29th. One analyst has rated the stock with a sell rating, one has given a hold rating and three have assigned a buy rating to the company’s stock. According to MarketBeat, Snap-on presently has an average rating of “Hold” and an average target price of $256.00.

Shares of NYSE SNA traded down $1.68 during trading hours on Thursday, hitting $215.43. 297,605 shares of the company’s stock were exchanged, compared to its average volume of 434,817. Snap-on has a 1-year low of $165.56 and a 1-year high of $259.99. The company has a debt-to-equity ratio of 0.29, a current ratio of 3.04 and a quick ratio of 2.23. The stock has a market capitalization of $11.57 billion, a price-to-earnings ratio of 14.71, a PEG ratio of 1.60 and a beta of 1.25. The company’s 50-day moving average price is $214.38 and its 200-day moving average price is $224.88.

Snap-on declared that its Board of Directors has initiated a stock repurchase plan on Thursday, November 4th that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits the company to repurchase up to 4.4% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s leadership believes its stock is undervalued.

The company also recently declared a quarterly dividend, which will be paid on Friday, December 10th. Investors of record on Friday, November 19th will be paid a dividend of $1.42 per share. This represents a $5.68 annualized dividend and a yield of 2.64%. This is a positive change from Snap-on’s previous quarterly dividend of $1.23. The ex-dividend date is Thursday, November 18th. Snap-on’s payout ratio is currently 38.77%.

Hedge funds have recently added to or reduced their stakes in the company. Nordea Investment Management AB grew its position in Snap-on by 105.0% during the 3rd quarter. Nordea Investment Management AB now owns 995,818 shares of the company’s stock worth $214,200,000 after acquiring an additional 509,954 shares during the last quarter. BlackRock Inc. grew its position in Snap-on by 9.1% during the 3rd quarter. BlackRock Inc. now owns 4,745,983 shares of the company’s stock worth $991,673,000 after acquiring an additional 395,086 shares during the last quarter. Macquarie Group Ltd. grew its position in Snap-on by 2,526.8% during the 2nd quarter. Macquarie Group Ltd. now owns 364,080 shares of the company’s stock worth $81,346,000 after acquiring an additional 350,220 shares during the last quarter. Morgan Stanley grew its position in Snap-on by 83.5% during the 2nd quarter. Morgan Stanley now owns 495,621 shares of the company’s stock worth $110,737,000 after acquiring an additional 225,521 shares during the last quarter. Finally, Natixis bought a new stake in Snap-on during the 3rd quarter worth approximately $33,766,000. Institutional investors own 86.74% of the company’s stock.

About Snap-on

Snap-On, Inc engages in the manufacture and marketing of tools, equipment, diagnostics, repair information, and systems solutions for professional users performing critical tasks. Its products and services include hand and power tools, tool storage, diagnostics software, handheld and PC-based diagnostic products, information and management systems, shop equipment and other solutions for vehicle dealerships and repair centers, as well as for customers in industries, such as aviation and aerospace, agriculture, construction, government and military, mining, natural resources, power generation and technical education.

See Also: Balanced Fund

Get a free copy of the Zacks research report on Snap-on (SNA)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Earnings History and Estimates for Snap-on (NYSE:SNA)

Receive News & Ratings for Snap-on Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Snap-on and related companies with MarketBeat.com's FREE daily email newsletter.