Tag Archives: NYSE:SNA

Snap-on: Zacks’ Bull of the Day Play

Snap-on Incorporated (SNAAnalyst Report) is cashing in on the economic recovery. This Zacks #1 Rank (Strong Buy) is expected to see double digit earnings growth in 2015 and in 2016.

Snap-on makes tools, equipment, diagnostics and repair information for car dealerships and repair centers as well as for customers in aviation and aerospace, agriculture, mining, power generation and technical education.

Even though it’s headquartered in Wisconsin, it’s a global operation.

Another Beat in Q4

On Feb 5, Snap-on reported its fourth quarter results and once again beat the Zacks Consensus Estimate. Earnings were $1.97 compared to the Zacks Consensus of $1.83.

Check out the amazing earnings surprise track record. It hasn’t missed in 5 years and shares have soared to all-time highs.

Sales rose 7.5% to $857.4 million from the fourth quarter of 2013, excluding unfavorable currency translation. Organic sales jumped 9.8%.

Its largest segment, Snap-on Tools Group, saw sales rise 10.5% to $387.5 million from the year ago quarter due to sales increases in both the US and international franchise operations. Excluding unfavorable currency translation, organic sales increased 11.8%.

The company expects sales momentum to carry into 2015.

3 estimates were raised for 2015 in the last 60 days. Analysts expect earnings to grow 10.5% in 2015 and another 11% in 2016.

Shares Soar

Shares hit new all-time highs after the solid earnings report but have since given some of it back.

Snap-on used to be a value play but with the surge in the shares it is now trading with a forward P/E of 18.1. That is basically in-line with the S&P 500 which trades with an average P/E of 17.9.

For those looking for an industrial name with a great earnings track record and double digit earnings growth, Snap-on is one to keep on your short list.

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Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec.