Snap-on Q3 sales and EPS miss expectations on diesel price impact

By Reuters News


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


Reuters Recommended Reads

  • Oct 21 - Knight-Swift Q3 revenue, EPS beat analyst expectations on pricing gains

  • Oct 20 - Truckload carrier Heartland Express' Q3 operating revenue falls more than expected

  • Oct 21 - Global diesel prices seen staying high despite Trump's deal with Russia


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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