Snap-on Inc (NYSE:SNA) reported first-quarter 2024 net sales of $1.182 billion, almost flat year-over-year, missing the consensus of $1.199 billion.
Net sales represented a decrease of $0.7 million, or 0.1% YoY, reflecting a decline of $9.9 million, or 0.8%, in organic sales, partially offset by acquisition-related sales and favorable foreign currency translation.
Gross margin expanded by 63 bps to 50.5% with gross profit increase of 1.2% Y/Y to $596.7 million.
Operating margin before financial services was 22.9%, up 90 bps, and consolidated operating income rose 4% to $339.2 million.
Adjusted EPS was $4.75 above the consensus of $4.64.
Commercial & Industrial Group declined 1.1%, Snap-on Tools Group fell 6.9% and Repair Systems & Information Group increased 3.9%. Financial Services revenue increased 7.6% to $99.6 million.
Snap held $1.12 billion in cash and cash equivalents, and operating cash flow totaled $348.7 million.
In 2024, Snap-on anticipates continuous growth by building on its strengths in the automotive repair sector, expanding its professional customer base into related markets and additional regions.
Outlook: Snap sees 2024 capital expenditures of approximately $100 million to $110 million and an effective income tax rate of 22% to 23%.
Price Action: SNA shares traded lower by 5.45% at $268.06 on Thursday.
