Snap-on Inc (SNA) Reports Q3 2023 Earnings: Sales and EPS Show Notable Growth
Q3 2023 sales of $1,159.3 million, up 5.2% from Q3 2022
Diluted EPS of $4.51, an 8.9% gain from Q3 2022
Operating margin before financial services of 21.2%, an increase of 90 basis points
Net earnings of $243.1 million, up from $223.9 million in Q3 2022
On October 19, 2023, Snap-on Inc (NYSE:SNA) released its Q3 2023 earnings report. The company reported net sales of $1,159.3 million, a 5.2% increase from Q3 2022. This growth was driven by a $52.4 million, or 4.7%, organic sales gain and $4.4 million of favorable foreign currency translation. The diluted EPS of $4.51 represents an 8.9% gain from Q3 2022.
Financial Highlights
Operating earnings before financial services for the quarter were $245.2 million, compared to $223.5 million in 2022. As a percentage of net sales, operating earnings before financial services were 21.2% in the third quarter, reflecting an improvement of 90 basis points from the previous year.
Financial services revenue in the quarter was $94.9 million, compared to $87.3 million in 2022. Financial services operating earnings were $69.4 million, compared to $66.4 million last year. Consolidated operating earnings for the quarter were $314.6 million, or 25.1% of revenues, compared to $289.9 million, or 24.4% of revenues, last year.
The third quarter effective income tax rate was 22.6% in 2023 and 21.6% in 2022. Net earnings in the quarter were $243.1 million, or $4.51 per diluted share, compared to net earnings of $223.9 million, or $4.14 per diluted share, a year ago.
Segment Results
The Commercial & Industrial Group segment reported sales of $366.4 million in the quarter, reflecting an $11.2 million, or 3.2%, organic sales gain. The Snap-on Tools Group segment reported sales of $515.4 million in the quarter, reflecting an $18.3 million, or 3.7%, organic sales increase. The Repair Systems & Information Group segment reported sales of $431.8 million in the quarter, reflecting a $13.0 million, or 3.1%, organic sales increase.
Outlook
For the remainder of 2023, Snap-on expects to make ongoing progress along its defined runways for coherent growth, leveraging capabilities already demonstrated in the automotive repair arena and developing and expanding its professional customer base. The company currently anticipates that its full-year 2023 effective income tax rate will approximate 23%.
This article first appeared on GuruFocus.
