Snap-On Q3: 5% Topline Growth, Changing Environment & More
Portfolio Pulse from Shivani Kumaresan
Snap-On Inc reported Q3 FY23 sales growth of 5.2% YoY to $1.16 billion, reflecting a $52.4 million organic sales gain and $4.4 million of favorable foreign currency translation. Segment sales in Commercial & Industrial Group, Snap-on Tools Group, and Repair Systems & Information Group increased on an organic basis. Gross profit for the quarter gained 8.6% to $578.2 million, and the gross margin expanded to 49.8%. Operating income increased 8.5% to $314.6 million. EPS improved from $4.14 to $4.51 YoY. Snap held $959.3 million in cash and equivalents as of September 30, 2023. The company anticipates its 2023 effective income tax rate to be about 23%.
October 19, 2023 | 12:53 pm
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Snap-On reported a 5.2% YoY sales growth in Q3 FY23, with an increase in gross profit and operating income. The EPS also improved from $4.14 to $4.51 YoY. However, SNA shares closed lower by 3.35% at $250.35 on Wednesday.
Despite the positive earnings report, SNA shares closed lower, indicating that the market might have expected better results or that other factors are influencing the stock price. The company's financial health seems strong with increased sales, profit, and EPS, which could potentially lead to a price increase in the future.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100