Published on 5 Apr 2024 on Zacks via Yahoo Finance
Snap-on's (SNA) Strategies Place the Stock on Growth Track
Snap-on Incorporated SNA has been gaining from a continued positive business momentum and contributions from its Value Creation plan. The company remains on track with its Rapid Continuous Improvement (RCI) process and other cost-reduction initiatives. Higher sales volume, pricing actions, lower material and other costs, as well as gains from the company's RCI initiatives, have been aiding SNA’s margins.The company reported impressive growth across operating segments in the fourth quarter of 2023. Both the top and bottom lines also improved year over year in the reported quarter. The bottom line surpassed the Zacks Consensus Estimate in fourth-quarter 2023, marking the 14th straight earnings beat.Net sales grew 3.5% year over year in the fourth quarter. The increase can be attributed to organic sales growth of 2.2%, $5.5 million of acquisition-related sales and a $9.1-million positive impact of foreign currency translations. From a geographical standpoint, it saw year-over-year increases in both North and South America, along with Europe. Consequently, shares of this Zacks Rank #3 (Hold) company have jumped 28.2% in the past year compared with the industry’s growth of 8.5%. The company’s shares also outpaced the sector’s gain of 12.5% and the S&P 500’s rise of 24.7%.The Zacks Consensus Estimate for SNA’s current financial-year sales and earnings suggests improvements of 2.2% and 2.4%, respectively, from the year-ago reported numbers.
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