Snap On Inc. (
SNA) manufactures tools, equipment and diagnostics for professional applications, selling its products to a wide range of international markets. The company was founded in 1920, has a market cap. of $3.21 billion and is headquartered in Kenosha, Wisconsin.
A Great Quarter
Snap-On reported strong second-quarter results on July 24 that demonstrate the company's ability to whether the difficult economy.
Sales were up 8% to $766.1 million, helped by positive currency translations. Net income totaled $66.9 million, up from $43.8 million last year. This produced earnings of $1.15 per share, ahead of analyst expectations of $1.05 per share.
A History of Surprising
This is the fourth time in four quarters that Snap-On has surprised and beaten analyst estimates, having done so by an average of 11 cents, or 13.3%.
Estimates Are Up
The analyst community is bullish on Snap On. The current-year estimate now stands at $4.10 per share, up from $4.05 30 days ago. The next-year estimate is pegged at $4.60 per share, a 12% earnings growth projection.
Attractive Valuations
Based upon this earnings projection, this stock is trading at a slight discount to the overall market, carrying a forward P/E multiple of 13.9X.
Shares of SNA have been trading sideways for most of the last month, moving between $55 and $60. The 52-week and all-time high is close at hand, just above $62. Take a look at the chart below.
