Snap-on Q3 sales and EPS miss expectations on diesel price impact
Overview
U.S. tools maker's Q3 sales fell 0.6% yr/yr, missing analyst expectations
Q3 diluted EPS missed analyst expectations
Company says diesel price surge hurt Tools Group, but gross margins remained strong
Outlook
Company expects to expand professional customer base in automotive repair and adjacent markets
Snap-on projects 2026 capital expenditures to be about $100 mln
Company anticipates full-year 2026 effective income tax rate of about 22%
Result Drivers
DIESEL PRICE IMPACT - Co said accelerated rise in diesel prices led franchisees to reduce inventories, hurting Tools Group sales
CRITICAL INDUSTRIES GAINS - Co said Commercial & Industrial Group benefited from growth in critical industries and precision torque products
GROSS MARGIN RESILIENCE - Co said gross margins remained strong despite sales decline
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Miss | $1.18 bln | $1.25 bln (8 Analysts) |
Q3 EPS | Miss | $4.64 | $4.93 (10 Analysts) |
Q3 Net Income | $249.60 mln | ||
Q3 Pretax Profit | Miss | $319.30 mln | $342.11 mln (8 Analysts) |
Q3 Adjusted Operating Earnings | $248.10 mln | ||
Q3 Gross Profit | $603.60 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 5 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy."
Wall Street's median 12-month price target for Snap-On Inc is $415.00, about 12.5% above its October 21 closing price of $368.91
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 20 three months ago
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Oct 21 - Global diesel prices seen staying high despite Trump's deal with Russia
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)