Here’s How Snap-on (SNA) Positions Itself Just Ahead of Q1 Earnings

Snap-on Company SNA is set to report its first-quarter 2023 results on April 20, before the market opens. The company is likely to see revenue and earnings growth when it reports its first-quarter results.

The Zacks Consensus Estimate for first-quarter earnings is set at $4.14 per share, suggesting a 3.5% increase from the year-ago quarter’s figure. The consensus estimate is unchanged over the past 30 days. The consensus estimate for quarterly revenue is set at $1.15 billion, suggesting a 4.8% increase from the year-ago quarter’s actual figure.

We expect the company’s total first-quarter revenue to increase 2.3% year-over-year to $1.12 billion and earnings to increase 0.2% to $4.01 per share.

In the last reported quarter, the company posted an earnings surprise of 8.1%. SNA has posted an average earnings surprise of 9.02% over the last four quarters.

Snap-On Incorporated Price and EPS Surprise

Snap-On Incorporated price-eps-surprise | Snap-On Incorporated Quote

Key factors to look out for

Snap-on benefits from continued positive business momentum and contributions made through its value creation plan. The company’s development strategy focused on three key areas: improving the franchise network, improving relationships with owners and managers of repair shops, and developing key industries in emerging markets.

SNA is implementing its rapid continuous improvement process and other cost-cutting initiatives. The RCI process is designed to increase organizational efficiency and minimize costs. Savings from the RCI initiative reflect gains from continuous productivity and process improvement plans that are likely to increase margins.

Management is improving customer service and expanding manufacturing and supply chain capabilities through RCI initiatives and continued investments. All the above-mentioned factors should have an impact on the company’s results in the quarter covered by the report.

However, Snap-on is reporting supply chain issues that are likely to negatively impact first-quarter results. Rising cost inflation, driven by higher raw material spending and higher transportation costs, is expected to be a concern. The unfavorable currency movement is expected to have a deterrent effect.

What the Zacks Model Reveals

Our proven model doesn’t clearly predict an earnings beat for Snap-on this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. With our Earnings ESP filter, you can discover the best stocks to buy or sell before they’re reported.

Snap-on has a Zacks Rank #3 and an Earnings ESP of 0.00%.

Stocks Poised to Beat Earnings Estimates

Here are some companies to consider because our model shows they have the right combination of elements to deliver better financial results:

Boyd Games BYD currently has an Earnings ESP of +0.30% and a Zacks Rank #2. BYD is likely to see growth in revenues and earnings when it reports first-quarter 2023 results. The Zacks Consensus Estimate for quarterly revenues is $878.7 million, suggesting an increase of 2.1% from the amount reported in the prior-year quarter.

You can see complete list of today’s Zacks #1 ranked stocks here.

The Zacks Consensus Estimate for Boyd Gaming’s first-quarter earnings is $1.47, suggesting a 5% increase from the $1.40 reported in the year-ago quarter. The consensus level has not changed in the last 30 days.

Marriott International MAR currently has an Earnings ESP of +3.04% and a Zacks Rank #2. MAR is likely to see growth in revenue and earnings when it reports first-quarter 2023 earnings. The Zacks Consensus Estimate for quarterly revenue is $5.3 billion, suggesting growth of 25.6% from the amount reported in the prior-year quarter.

The Zacks Consensus Estimate for Marriott’s first-quarter earnings is $1.85, suggesting year-over-year growth of 48%. The consensus level is unchanged over the past 30 days.

Sony SONY currently has an Earnings ESP of +10.74% and a Zacks Rank of #3. SONY is likely to post an increase in earnings when it reports its fourth quarter fiscal 2022. The Zacks Consensus Estimate for quarterly revenue is $22.8 billion, suggesting an increase of 16.9% from the year-ago quarter figure.

The Zacks Consensus Estimate for Sony’s fiscal fourth-quarter earnings is at 50 cents, suggesting a decline of 35.1% from the 77 cents reported in the year-ago quarter. The consensus level has not changed in the last 30 days.

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