Sunday, February 10, 2013

Will These Numbers from Snap-on Be Good Enough for You?

Snap-on (NYSE: SNA  ) is expected to report Q4 earnings on Feb. 7. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Snap-on's revenues will grow 2.8% and EPS will increase 7.1%.

The average estimate for revenue is $757.2 million. On the bottom line, the average EPS estimate is $1.36.

Revenue details
Last quarter, Snap-on tallied revenue of $711.6 million. GAAP reported sales were 3.0% higher than the prior-year quarter's $729.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $1.26. GAAP EPS of $1.26 for Q3 were 8.6% higher than the prior-year quarter's $1.16 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 49.1%, 110 basis points better than the prior-year quarter. Operating margin was 16.8%, 60 basis points better than the prior-year quarter. Net margin was 9.9%, 60 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $2.94 billion. The average EPS estimate is $5.14.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 199 members out of 215 rating the stock outperform, and 16 members rating it underperform. Among 77 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 74 give Snap-on a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Snap-on is hold, with an average price target of $75.25.

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