Snap-On (SNA) Tops Q3 EPS by $1.12

Snap-On (NYSE: SNA) reported Q3 EPS of $3.28, $1.12 better than the analyst estimate of $2.16. Revenue for the quarter came in at $941.6 million versus the consensus estimate of $806.17 million.

Outlook:

COVID-19 has spread across the globe during 2020 and is impacting economic activity worldwide. Snap-on experienced sequential improvements in the third quarter as our operations continued accommodating to the related risks while safely pursuing opportunities in the COVID-19 environment. In the near term, the company believes there will be continued accommodations to the virus-related turbulence, but that the trajectory of progress may be uncertain due to the evolving nature and duration of the pandemic.

Snap-on expects to maintain focus on its defined runways for coherent growth, leveraging capabilities already demonstrated in the automotive repair arena and developing and expanding its professional customer base, not only in automotive repair, but in adjacent markets, additional geographies and other areas, including extending in critical industries, where the cost and penalties for failure can be high. In pursuit of these initiatives, the company expects that capital expenditures in 2020 will be in a range of $75 million to $85 million, of which $39.1 million was incurred in the first nine months of the year. Snap-on continues to respond to the global macroeconomic challenges through its Rapid Continuous Improvement (RCI) process and other cost reduction initiatives.

Snap-on currently anticipates that its full year 2020 effective income tax rate will be in the range of 23% to 25%.

For earnings history and earnings-related data on Snap-On (SNA) click here.

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