Snap-on Gears Up for Q4 Earnings: Here's What You Should Know

Snap-on Incorporated SNA prepares to announce its fourth-quarter 2024 earnings results on Feb. 6, before the opening bell. The Zacks Consensus Estimate for revenues is $1.2 billion, which indicates a drop of 0.7% from the year-ago quarter’s level.The consensus estimate for quarterly earnings has been stable over the past 30 days at $4.77 per share and indicates an increase of 0.4% from the year-earlier quarter’s number. The company has an average trailing four-quarter earnings surprise of 1.6%. It delivered an earnings surprise of 2.6% in the last reported quarter.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Snap-On Incorporated Price, Consensus and EPS Surprise Snap-On Incorporated price-consensus-eps-surprise-chart | Snap-On Incorporated QuoteWhat the Zacks Model Unveils for SNA StockOur proven model does not 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. You can uncover the best stocks before they are reported with our Earnings ESP Filter.Snap-on has an Earnings ESP of 0.00% and a Zacks Rank of 3.Things to Consider About SNA’s Upcoming ResultsSnap-on is advancing toward strengthening its business model by enhancing value-creation processes, and improving safety, service quality, customer satisfaction and innovation. Its growth strategy focuses on expanding the franchise network, deepening relationships with repair shop owners and growing in emerging markets. For the rest of fiscal 2024, SNA anticipates progress along its defined runways for growth. Gains from these initiatives are expected to aid top and bottom lines in the to-be-reported quarter.The Rapid Continuous Improvement (RCI) initiatives drive efficiency, cost savings and margin expansion, while strategic investments in manufacturing and supply chain capabilities further enhance operational strength. With ongoing innovation and global brand expansion, Snap-on is well-positioned to deliver strong performance in the upcoming quarter through improved productivity and customer engagement.Snap-on continues to invest in tools, equipment and OEM dealership programs, expanding its capabilities to support growing vehicle complexity and repair demands. The RS&I Group is strengthening its presence in independent garages, while the Tools Group focuses on product innovation and enhanced selling efforts. Critical industries remain strong, with rising demand for customized solutions and torque tools. The industrial division continues its upward trajectory, driving profitability. Management expects resilience across markets and steady progress in automotive repair and key industries, positioning Snap-on for profit growth in the upcoming quarter.Our model estimates sales growth of 0.4% for Commercial & Industrial Group with a 70-basis-point (bps) segment operating margin expansion to 15.6% for the fourth quarter 2024.However, Snap-on faces macroeconomic headwinds, including geopolitical uncertainty in Europe, delayed recovery in China and rising cost inflation. Regional challenges, technical recessions and prolonged conflicts may hurt SNA’s performance in the near term. On the last management call, Snap-on anticipated continued progress by leveraging capabilities in the automotive repair arena as well as expanding its customer base in automotive repair and across geographies, including critical industries. Additionally, the company’s Tools Group performance has been soft for a while. We estimate a 2.3% decline in the Tools Group for the fourth quarter.SNA’s Price Performance & ValuationFrom a valuation perspective, Snap-on offers an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings of 17.60x, which is below the five-year high of 18.63x and the Tools - Handheld industry’s average of 17.81x, the stock offers compelling value for investors seeking exposure to the sector.The recent market movements show that SNA’s shares have gained 7.3% in the past three months compared with the industry's 6.5% growth.SNA Stock's Past Three Months Price PerformanceImage Source: Zacks Investment ResearchStocks With the Favorable CombinationHere are some companies that, according to our model, have the right combination of elements to beat on earnings this reporting cycle.lululemon athletica LULU currently has an Earnings ESP of +0.25% and a Zacks Rank of 2. LULU is likely to register top-line growth when it reports fourth-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.6 billion, indicating 11.5% growth from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.The consensus estimate for LULU’s fourth-quarter earnings is pegged at $5.83 per share, implying a 10.2% increase from the year-earlier quarter. The consensus mark has been stable in the past seven days.Savers Value Village, Inc. SVV currently has an Earnings ESP of +2.85% and a Zacks Rank #2. The company is likely to register an increase in the top line when it reports fourth-quarter 2024 numbers. The consensus mark for revenues is pegged at $402 million, which implies growth of 5% from the year-ago quarter.The Zacks Consensus Estimate for Savers Value Village’s quarterly earnings has risen 1 cent in the past 30 days to 12 cents per share, which indicates a decrease of 20% from the prior-year quarter.Revolve Group, Inc. RVLV currently has an Earnings ESP of +4.65% and a Zacks Rank #3. The company is expected to register an increase in its top and bottom lines when it reports fourth-quarter 2024 numbers. The Zacks Consensus Estimate for RVLV’s quarterly revenues is pegged at $281.7 million, which indicates growth of 9.3% from the prior-year quarter’s reported figure.The consensus mark for Revolve Group’s quarterly earnings has increased in the past 30 days to 9 cents per share. The estimate indicates an increase of 80% from the year-ago quarter. RVLV delivered an earnings surprise of 94.8% in the trailing four quarters, on average.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Snap-On Incorporated (SNA): Free Stock Analysis Report lululemon athletica inc. (LULU): Free Stock Analysis Report Revolve Group, Inc. (RVLV): Free Stock Analysis Report Savers Value Village, Inc. (SVV): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks