Snap-on Outperforms Estimate - Analyst Blog
February 07 2013 - 8:51AM
Zacks
Snap-on Incorporated (SNA) announced
fourth-quarter 2012 results before the market opened today,
reporting earnings per share of $1.43, above the Zacks Consensus
Estimate of $1.37 and the prior-year quarter’s earnings of
$1.27.
Earnings per share for full year 2012 are $5.20, above the Zacks
Consensus Estimate of $5.14 and the prior year quarter earnings of
$4.52. The company’s good results show its strength in its
sector.
Total Revenue
Total revenue in the quarter increased by 2.3% year over year to
$753.2 million. Organically the sales increased by 2.5%. For full
year 2012, total revenue was $2.94 billion, up 2.9% year over
year.
Segment Results
Commercial & Industrial Group segment sales
of $275.6 million in the quarter, down 6.7% year over year. Decline
in revenue from military as well as from European-based hand tools
business accounted for the decrease in sales. Snap-on Tools
Group segment sales were $321.6 million, up 9.8% led by
SNA’s U.S. and international franchise operations.
Repair Systems & Information Group segment
sales were $241.6 million in the quarter, up 2.2%.
Income and
Expenses
Operating earnings for the quarter were $140.7 million compared
with $125.9 million in the prior-year quarter. Operating expenses
were $240.6 million compared with $232.0 million.
Balance Sheet
Cash and Cash equivalents were $214.5 million at the end of the
quarter with long-term debt of $970.4 million and shareholders
equity of $1.82 billion compared with $185.6 million, $967.9
million and $1.55 billion, respectively.
Outlook
Snap-on expects to incur capital expenditures of $70 million to
$80 million in 2013. The company noted that it will continue its
focus on emerging markets, expand its presence in new industries,
enhance its mobile tool distribution network and expand in the
vehicle repair garage.
The biggest advantage of Snap-on is its ability to innovate and
it has been doing so over the last 90 years. Snap-On has invested
in new products and increased brand awareness. The company has
managed to create product excitement and real customer value
through a combination of innovation and customer connection
processes.
However, the European financial crisis, uncertainty about the
U.S. fiscal cliff on January 1, 2013, and the slowing
Chinese economy, collectively contribute to a tenuous global
business environment. These macro conditions provide limited
visibility into the company’s future performance.
Snap-on Incorporated is a global provider of professional tools,
equipment, and related solutions for technicians, vehicle service
centers, original equipment manufacturers (OEMs), and other
industrial users. Products include a broad range of professional
hand and power tools; tool storage; vehicle diagnostics and service
equipment; business management systems; equipment repair services;
and other tool and equipment solutions.
Snap-on currently has a Zacks #3 Rank (Hold). Its close rivals
such as Interdigital Inc. (IDCC), Juniper
Networks (JNPR) and Clean Energy Fuels
Inc. (CLNE) all have a Zacks Rank #2 (Buy).
CLEAN EGY FUELS (CLNE): Free Stock Analysis Report
INTERDIGITL INC (IDCC): Free Stock Analysis Report
JUNIPER NETWRKS (JNPR): Free Stock Analysis Report
SNAP-ON INC (SNA): Free Stock Analysis Report
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