Snap-on Q3 sales and EPS miss expectations on diesel price impact

Snap-On

Yesterday 11:39

Overview
U.S. tools maker's Q3 sales fell 0.6% yr/yr, missing analyst expectations
Q3 diluted EPS missed analyst expectations
Company says diesel price surge hurt Tools Group, but gross margins remained strong

Outlook
Company expects to expand professional customer base in automotive repair and adjacent markets
Snap-on projects 2026 capital expenditures to be about $100 mln
Company anticipates full-year 2026 effective income tax rate of about 22%

Result Drivers
DIESEL PRICE IMPACT - Co said accelerated rise in diesel prices led franchisees to reduce inventories, hurting Tools Group sales
CRITICAL INDUSTRIES GAINS - Co said Commercial & Industrial Group benefited from growth in critical industries and precision torque products
GROSS MARGIN RESILIENCE - Co said gross margins remained strong despite sales decline

Company press release: ID:nBw2j94wga

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Miss
$1.18 bln
$1.25 bln (8 Analysts)
Q3 EPS
Miss
$4.64
$4.93 (10 Analysts)
Q3 Net Income
 
$249.60 mln
 
Q3 Pretax Profit
Miss
$319.30 mln
$342.11 mln (8 Analysts)
Q3 Adjusted Operating Earnings
 
$248.10 mln
 
Q3 Gross Profit
 
$603.60 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 5 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy."
Wall Street's median 12-month price target for Snap-On Inc is $415.00, about 12.5% above its October 21 closing price of $368.91
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 20 three months ago

Reuters Recommended Reads
Oct 21 - Knight-Swift Q3 revenue, EPS beat analyst expectations on pricing gains
Oct 20 - Truckload carrier Heartland Express' Q3 operating revenue falls more than expected
Oct 21 - Global diesel prices seen staying high despite Trump's deal with Russia

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)