Snap-On Inc (NYSE:SNA) reported third-quarter FY23 sales growth of 5.2% year-on-year to $1.16 billion.
The revenue increase reflected a $52.4 million, or 4.7%, organic sales gain, $4.4 million of favorable foreign currency translation.
Segment Sales: Commercial & Industrial Group climbed 3.2%, Snap-on Tools Group rose 3.7% and Repair Systems & Information Group increased 3.1%, all on an organic basis.
Gross profit for the quarter gained 8.6% to 578.2 million, and the gross margin expanded to 49.8%.
Operating income for the quarter increased 8.5% to $314.6 million, and the operating margin expanded around 80 basis points to 27.1%.
EPS of $4.51 improved from $4.14 in the same period last year.
Snap held $959.3 million in cash and equivalents as of September 30, 2023. Operating cash flow totaled $285.4 million.
“We’re encouraged by our third quarter as it reflects ongoing advancement in sales, profitability, and earnings in a continually changing environment, and it demonstrates the wide-ranging and considerable strengths that mark each of our operating segments,” said Chairman and CEO Nick Pinchuk.
Outlook: Snap sees FY23 capital expenditures of approximately $100 million. It currently anticipates its 2023 effective income tax rate to be about 23%.
Price Action: SNA shares closed lower by 3.35% at $250.35 on Wednesday.
