Snap-on Inc

SNA: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$729.00	Xpxhx	Swqmmgbc

Snap-on Earnings: Solid Repair Demand Lifts First-Quarter Earnings

Dawit Woldemariam

Apr 20, 2023

The market sent Snap-on's shares up 9% in intraday trading after the company beat consensus estimates. Snap-on outperformed on the bottom line, growing 15% year on year to $4.60. The company has been growing sales at a good clip, thanks to solid repair demand. That said, we elected to maintain our $193 fair value estimate, given our forecast already bakes in solid growth for 2023. For sales, we’re projecting over 3% growth compared with 2022, which assumes solid growth across Snap-on’s segments. We’re also expecting operating margins to hold up well, landing at 20.0%. Our margin estimate assumes the company starts to slow price increases.

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