Snap-on Q1 Earnings on Deck: Will Strong Business Trends Drive a Beat?

Snap-on Incorporated SNA prepares to announce its first-quarter 2025 earnings results on April 17, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $1.2 billion, which indicates an increase of 1.4% from the year-ago quarter’s reported level.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The consensus estimate for quarterly earnings has been unchanged in the past 30 days at $4.82 per share, indicating an increase of 1.5% from the year-earlier quarter’s reported number.The company delivered a trailing four-quarter earnings surprise of 1.09%, on average. It posted an earnings surprise of 0.4% in the last reported quarter.What the Zacks Model Unveils for SNA StockOur proven model does not conclusively 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 is 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 Before SNA’s Upcoming ResultsSnap-on continues to strengthen its business model through initiatives that enhance value creation across safety, service quality, customer satisfaction and innovation. The company’s strategic growth agenda includes expanding its franchise network, deepening relationships with repair shop owners and increasing its presence in emerging markets. These efforts are expected to have supported both revenues and earnings in the to-be-reported quarter.A cornerstone of Snap-on’s operational strategy is its focus on Rapid Continuous Improvement (“RCI”), a process aimed at boosting efficiency, controlling costs and enhancing organizational performance. RCI has contributed to improved sales, higher margins and operational savings, while also enabling investments in customer service manufacturing and supply-chain capabilities. Management expects continued progress from RCI to have aided margins in the first quarter.Snap-on’s innovation engine remains strong, with ongoing investments in product development and global brand expansion. These efforts have positioned the company to maintain solid performance through improved productivity and deeper customer engagement, which are expected to be reflected in the to-be-reported quarter’s results.Snap-On Incorporated Price and EPS Surprise  Snap-On Incorporated price-eps-surprise | Snap-On Incorporated QuoteThe company’s momentum has been further supported by robust activity in the automotive repair segment. Vehicle complexity continues to rise, with the introduction of advanced drivetrains, new motor technologies and sensor-laden electrical systems enabling semi-autonomous functionality. This evolution is pushing OEMs, dealerships and independent garages to invest in modernizing service infrastructure, renovating bays, upgrading tools and expanding capacity to meet increasing repair demands.On the last reported quarter’s earnings call, management reaffirmed expectations of ongoing strength in the vehicle repair market. Backed by cutting-edge tools, a proprietary diagnostic database and a sharp focus on customer relationships, Snap-on is well-positioned to benefit from this structural shift. These factors are expected to contribute to positive results in first-quarter 2025. Our model predicts a 2% sales growth for the Commercial & Industrial Group and a 1% gain for the Repair Systems & Information Group in the first quarter.Despite these strengths, Snap-on faces several external challenges. Macroeconomic headwinds, geographic pressures in critical industries and geopolitical disruptions, particularly in Europe related to the ongoing conflict in Ukraine, continue to impact performance. The company has also reported weak results in China and persistent cost inflation from rising raw material and operational expenses poses a risk to profitability.Management acknowledges these pressures, noting that prolonged global instability and inflationary concerns could weigh on results. Moreover, Tools Group performance has remained soft for a while. We estimate a 0.9% decline in the Tools Group for the first quarter.Nonetheless, Snap-on remains confident in the resilience of its markets and operational structure, and aims to drive continued progress by leveraging capabilities in automotive repair while expanding footprint in both existing and new geographies, including critical industries.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 16.01X, which is below the five-year high of 18.63X and the Tools - Handheld industry’s average of 16.1X, the stock offers compelling value for investors seeking exposure to the industry. Image Source: Zacks Investment Research The recent market movements show that SNA’s shares have lost 4.9% in the past three months compared with the industry's 5.4% decline.SNA Stock's 3-Month Price Performance Image Source: Zacks Investment Research Stocks With Favorable CombinationHere are some companies that, according to our model, have the right combination of elements to beat on earnings this reporting cycle.Hasbro HAS currently has an Earnings ESP of +3.07% and a Zacks Rank #3. The company is likely to register an increase in the top and bottom line when it reports first-quarter 2025 numbers. The consensus mark for revenues is pegged at $769.7 million, which implies growth of 1.6% from the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Hasbro’s quarterly earnings has moved down by a penny in the past 30 days to 70 cents per share, but indicates an increase of 14.8% from the prior-year quarter. HAS delivered an earnings surprise of 12.7% in the trailing four quarters, on average.Planet Fitness PLNT presently has an Earnings ESP of +5.23% and a Zacks Rank #3. The company is expected to register an increase in its top and bottom lines when it reports first-quarter 2025 numbers. The Zacks Consensus Estimate for PLNT’s quarterly revenues is pegged at $283.9 million, which indicates growth of 14.5% from the prior-year quarter’s reported figure.The consensus mark for Planet Fitness’ quarterly earnings has increased a penny in the past 30 days to 62 cents per share. The estimate indicates an increase of 17% from the year-ago quarter. PLNT delivered an earnings surprise of 10.2% in the trailing four quarters, on average.Interparfums, Inc. IPAR currently has an Earnings ESP of +5.50% and a Zacks Rank of 3. IPAR is likely to register top-line growth when it reports first-quarter 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $33.6 million, indicating 3% growth from the figure reported in the year-ago quarter.The consensus estimate for IPAR’s first-quarter earnings is pegged at $1.13 per share, implying an 11% decline from the year-earlier quarter. The consensus mark has declined 3.4% in the past 30 days. IPAR delivered a negative earnings surprise of 1.02% in the trailing four quarters, on average.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>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 Hasbro, Inc. (HAS): Free Stock Analysis Report Snap-On Incorporated (SNA): Free Stock Analysis Report Interparfums, Inc. (IPAR): Free Stock Analysis Report Planet Fitness, Inc. (PLNT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks