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Factors Likely to Influence Snap-On's (SNA) Q2 Earnings

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Snap-On Inc. SNA is scheduled to report second-quarter 2020 results on Jul 31. In the last reported quarter, this global provider of professional tools, equipment and related solutions delivered a negative earnings surprise of 5.5%. The company has delivered a negative earnings surprise of 1%, on average, in the trailing four quarters.

The consensus mark for the company’s second-quarter earnings is pegged at $1.94 per share, which suggests a decline of 39.8% from the year-ago quarter’s reported figure. However, the consensus mark for the same has moved 3.2% north in the past seven days. For second-quarter revenues, the consensus mark is pegged at $707.5 million, which indicates a 25.6% decrease from the prior-year quarters reported figure.

Key Factors to Note

Snap-On has been witnessing sluggish sales volume across all geographies and various customer groups, including the automotive repair, due to the ongoing COVID-19 outbreak, which intensified during the first quarter. Due to the same reason, management, in its last earnings call, anticipated sales and credit originations to decline year over year in second-quarter 2020. Apart from these, adverse impacts of foreign currency have been exerting pressure on the company’s overall performance and segmental results for a while now.

Nevertheless, it is making efforts, including cost-cutting initiatives and the Rapid Continuous Improvement (RCI) plan, to combat the uncertain COVID-19 impacts. Notably, its robust business model and focus on value-creation processes have been aiding the company’s earnings. Moreover, this RCI program, designed to enhance organizational effectiveness and efficiency and generate savings, has been aiding margins. Such endeavors are likely to have provided some cushion to the company’s second-quarter performance.

SnapOn Incorporated Price and EPS Surprise

SnapOn Incorporated Price and EPS Surprise
SnapOn Incorporated Price and EPS Surprise

SnapOn Incorporated price-eps-surprise | SnapOn Incorporated Quote

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Snap-onthis time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Snap-oncarries a Zacks Rank #4 (Sell) and an Earnings ESP of -12.46%.

Stocks With Favorable Combinations

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.

Hanesbrands HBI currently has an Earnings ESP of +120.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Rent-A-Center RCII currently has an Earnings ESP of +3.39% and a Zacks Rank #3.

Spectrum Brands SPB currently has an Earnings ESP of +4.85% and a Zacks Rank #3.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>


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RentACenter, Inc. (RCII) : Free Stock Analysis Report
 
SnapOn Incorporated (SNA) : Free Stock Analysis Report
 
Hanesbrands Inc. (HBI) : Free Stock Analysis Report
 
Spectrum Brands Holdings Inc. (SPB) : Free Stock Analysis Report
 
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