Snap-on Inc (NYSE:SNA) shares are trading lower after it reported fourth-quarter FY23 results.
Sales rose 3.5% Y/Y to $1.197 billion, missing the consensus of $1.202 billion. The revenue increase reflected a $26.1 million, or 2.2%, organic sales gain, $5.5 million of acquisition-related sales, and $9.1 million of favorable foreign currency translation.
Segment Sales: Commercial & Industrial Group climbed 3.3%, Snap-on Tools Group fell 5.7% and Repair Systems & Information Group increased 2.0%, all on an organic basis.
Gross profit for the quarter rose to $577.6 million from $560.7 a year ago.
Operating earnings for the quarter increased to $325.8 million from $311.9 million the prior year, and the operating margin expanded around 10 basis points to 25.2%. EPS of $4.75 beat the consensus of $4.66.
Snap held $1.00 billion in cash and cash equivalents, and operating cash flow totaled $1.15 billion as of year-end.
Nick Pinchuk, chairman and chief executive officer, said, “In the fourth quarter, our businesses serving critical industries demonstrated continuing positive momentum and the acquisition of Mountz, Inc. extended our product offering for this important customer segment where the need for precision is building and the penalty for failure is high.”
Outlook: Snap sees FY24 capital expenditures of approximately $100 million to $110 million and an effective income tax rate of 22% to 23%.
Price Action: SNA shares are down 8.9% at $268.18 on the last check Thursday.
