Factors to Track Just Ahead of Snap-on's (SNA) Q2 Earnings
Snap-on Incorporated SNA is slated to release its second-quarter 2023 results on Jul 20, before market open. The company is likely to record top and bottom-line growth when it reports second-quarter results.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $4.53 per share, suggesting growth of 6.1% from the year-ago quarter’s reported figure. The consensus mark has moved up 1.1% in the past seven days. The consensus estimate for quarterly revenues is pegged at $1.18 billion, indicating a rise of 4.2% from the year-ago quarter’s actuals.
In the last reported quarter, the company posted an earnings surprise of 11.1%. SNA has a trailing four-quarter earnings surprise of 9.6%, on average.
Snap-On Incorporated Price and EPS Surprise
Snap-On Incorporated price-eps-surprise | Snap-On Incorporated Quote
Key Factors to Note
Snap-on has been gaining from a continued positive business momentum and contributions from its Value Creation plan. The company’s growth strategy has been focusing on three critical areas, enhancing the franchise network, improving relationships with repair shop owners and managers, and expanding critical industries in emerging markets.
SNA has been on track with its Rapid Continuous Improvement process and other cost-reduction initiatives. The RCI process has been designed to enhance organizational effectiveness and minimize costs. Savings from the RCI initiative reflect gains from the continuous productivity and process improvement plans, which are likely to have aided margins.
We expect the company’s gross margin to expand 130 bps to 50% in the second quarter, while the operating margin is likely to be flat year over year at 27.4%.
Management has been boosting customer services, and enhancing manufacturing and supply-chain capabilities through the RCI initiatives and further investments. All the aforesaid factors should have contributed to the company’s top and bottom-line performances in the to-be-reported quarter.
However, Snap-on has been witnessing supply-chain headwinds, which are likely to have hurt the second-quarter performance. Rising cost inflation, stemming from higher raw material expenses and increased transportation costs, is expected to have been concerning. Unfavorable foreign currency movement is anticipated to have acted as a deterrent.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Snap-on this 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-on has a Zacks Rank #2 and an Earnings ESP of -0.13%.
Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Marriott International MAR currently has an Earnings ESP of +8.09% and a Zacks Rank #2. MAR is likely to register top and bottom-line growth when it reports second-quarter 2023. The Zacks Consensus Estimate for its quarterly revenues is pegged at $6.05 billion, suggesting 13.3% growth from the figure reported in the prior-year quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Marriott’s second-quarter earnings is pegged at $2.18, suggesting year-over-year growth of 21.1%. The consensus mark has moved up by a penny in the past 30 days.
Boyd Gaming BYD currently has an Earnings ESP of +3.16% and a Zacks Rank #3. BYD is likely to register bottom-line growth when it reports second-quarter 2023. The Zacks Consensus Estimate for its quarterly revenues is pegged at $890.5 million, suggesting a 0.4% decline from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Boyd Gaming’s second-quarter earnings is pegged at $1.57, suggesting 6.1% growth from the $1.48 reported in the year-ago quarter. The consensus mark has moved up by a penny in the past seven days.
Netflix NFLX currently has an Earnings ESP of +2.11% and a Zacks Rank #3. Netflix is likely to register top-line growth when it reports second-quarter 2023. The Zacks Consensus Estimate for its quarterly revenues is pegged at $8.3 billion, suggesting 3.6% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Netflix’s second-quarter earnings is pegged at $2.82, suggesting an 11.9% decline from the $3.20 reported in the year-ago quarter. The consensus mark has moved up by a penny in the past seven days.
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Marriott International, Inc. (MAR) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
Snap-On Incorporated (SNA) : Free Stock Analysis Report
Boyd Gaming Corporation (BYD) : Free Stock Analysis Report
