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Jul 01, 2023

Snap-on Q2 2023 Earnings Report

Snap-on's Q2 2023 performance was driven by broad enterprise strength, leading to sales, profitability, and earnings momentum.

Key Takeaways

Snap-on Incorporated reported a 4.8% increase in net sales, reaching $1,191.3 million, with organic sales up by 5.6%. Diluted EPS improved by 14.5% to $4.89, and the operating margin before financial services expanded by 160 basis points to 23.3%.

Net sales increased by 4.8% to $1,191.3 million, with organic sales growing by 5.6%.

Diluted EPS rose by 14.5% to $4.89 compared to Q2 2022.

Operating margin before financial services expanded by 160 basis points to 23.3%.

Financial Services revenue increased to $93.4 million, with operating earnings of $66.9 million.

Total Revenue
$1.19B
Previous year: $1.14B
+4.7%
EPS
$4.89
Previous year: $4.27
+14.5%
Organic Sales Growth
5.6%
Op. Margin (ex. Fin.)
23.3%
Previous year: 21.7%
+7.4%
Effective Tax Rate
22.9%
Previous year: 23.8%
-3.8%
Gross Profit
$604M
Previous year: $554M
+9.1%
Cash and Equivalents
$871M
Previous year: $813M
+7.2%
Total Assets
$7.23B
Previous year: $6.86B
+5.3%

Snap-on

Snap-on

Snap-on Revenue by Segment

Forward Guidance

Snap-on anticipates ongoing progress in 2023, leveraging its capabilities in automotive repair and expanding its professional customer base in adjacent markets and geographies, including critical industries. Capital expenditures for 2023 are projected to be approximately $100 million, and the full-year effective income tax rate is expected to be in the range of 23% to 24%.

Positive Outlook

  • Continuing resilience against uncertainties in the current environment.
  • Ongoing progress along defined runways for coherent growth.
  • Leveraging capabilities in the automotive repair arena.
  • Developing and expanding its professional customer base.
  • Extending in critical industries, where the cost and penalties for failure can be high.

Revenue & Expenses

Visualization of income flow from segment revenue to net income