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Sep 30, 2023
Snap-on Q3 2023 Earnings Report
Net sales increased by 5.2% and diluted EPS increased by 8.9% compared to Q3 2022.
Key Takeaways
Snap-on Incorporated reported a positive third quarter in 2023, with sales reaching $1,159.3 million, a 5.2% increase from Q3 2022. Diluted EPS rose to $4.51, an 8.9% gain from the previous year. The company's performance reflects advancement in sales, profitability, and earnings amid a changing environment.
Net sales increased by 5.2% compared to Q3 2022, with organic sales up by 4.7%.
Operating margin before financial services improved by 90 basis points to 21.2%.
Diluted EPS reached $4.51, representing an increase of 8.9% from Q3 2022.
Consolidated operating earnings were $314.6 million, or 25.1% of revenues.
Snap-on
Snap-on
Snap-on Revenue by Segment
Revenue by Segment
Commercial & Industrial Revenue
CapyFin.comSnap-on Tools Group Revenue
CapyFin.comRepair Systems & Info Group Revenue
CapyFin.comFinancial Services Revenue
CapyFin.com Forward Guidance
Snap-on anticipates ongoing progress along its growth initiatives, expanding its professional customer base in automotive repair and adjacent markets. Capital expenditures for 2023 are projected to be approximately $100 million, and the full-year effective income tax rate is expected to be around 23%.
Positive Outlook
- Ongoing progress along defined runways for coherent growth.
- Leveraging capabilities demonstrated 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.
- Full-year 2023 effective income tax rate will approximate 23%.
Challenges Ahead
- Uncertainties of the current environment.
- Lower sales in the segment’s Asia Pacific operations for Commercial & Industrial Group segment.
- Lower activity with OEM dealerships for Repair Systems & Information Group segment.
- Corporate expenses increased from $26.4 million to $31.2 million.
- Maintaining and fortifying our decisive advantages by leveraging our Snap-on Value Creation Processes.
Revenue & Expenses
Visualization of income flow from segment revenue to net income