- Wednesday, October 16, 2024
Snap-On, the Kenosha, Wis.-based tools and equipment maker, experienced a drop in share prices following underwhelming sales performance in its large tools segment during the fourth quarter. On Thursday, the stock decreased by 8.6% to $269.12, with shares down 6.7% overall this year.
In terms of financials, Snap-On reported a fourth-quarter profit of $255.3 million, or $4.75 per share, compared to $238.9 million, or $4.42 per share, in the previous year. Analysts polled by FactSet had predicted earnings per share of $4.66.
Although sales increased by 3.5% to $1.197 billion, they fell short of analysts' forecast of $2.202 billion. However, this growth was partially driven by a 2.2% organic gain.
Snap-On revealed that organic sales in its largest segment, the Snap-on Tools Group, declined by 5.7%. This decrease was attributed to reduced activity in U.S. operations. On the other hand, both the Commercial & Industrial Group and the Repair Systems & Information Group segments experienced modest single-digit organic growth.
Despite some operational variability during the quarter, Chief Executive Nick Pinchuk expressed confidence in the company's business strength and the resilience of its markets.
Looking ahead, Snap-On stated its expectation of ongoing progress in its plans for "coherent growth" by 2024 and an expansion of its professional customer base.
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