Zacks Research Has Bearish Forecast for Snap-On Q2 Earnings

Key Points

• Zacks Research lowered its Q2 2026 EPS estimate for Snap-On to $4.84 from $4.98, adding to a broader pullback in near-term earnings expectations.
• Snap-On recently missed Q1 earnings estimates, reporting $4.69 EPS versus $4.75 expected, even though revenue came in slightly above forecasts at $1.21 billion.
• The company continues to return cash to shareholders through a $2.44 quarterly dividend and a newly authorized $500 million share buyback program.

Snap-On Incorporated (NYSE:SNA - Free Report) - Equities researchers at Zacks Research cut their Q2 2026 EPS estimates for Snap-On in a report released on Wednesday, May 13th. Zacks Research analyst Team now anticipates that the company will post earnings of $4.84 per share for the quarter, down from their prior estimate of $4.98. The consensus estimate for Snap-On's current full-year earnings is $19.75 per share. Zacks Research also issued estimates for Snap-On's Q3 2026 earnings at $4.96 EPS, Q4 2026 earnings at $5.13 EPS, FY2026 earnings at $19.62 EPS, Q1 2027 earnings at $4.96 EPS, Q2 2027 earnings at $4.93 EPS, Q3 2027 earnings at $5.30 EPS, Q4 2027 earnings at $5.27 EPS, FY2027 earnings at $20.45 EPS and Q1 2028 earnings at $5.24 EPS.

Snap-On (NYSE:SNA - Get Free Report) last posted its earnings results on Thursday, April 23rd. The company reported $4.69 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $4.75 by ($0.06). Snap-On had a net margin of 21.28% and a return on equity of 17.13%. The firm had revenue of $1.21 billion during the quarter, compared to the consensus estimate of $1.19 billion. During the same quarter last year, the firm posted $4.51 EPS. The business's revenue was up 5.8% on a year-over-year basis.

A number of other research analysts have also recently issued reports on the stock. Tigress Financial lifted their target price on shares of Snap-On from $405.00 to $445.00 and gave the company a "buy" rating in a research note on Friday, February 27th. Roth Mkm reiterated a "buy" rating and issued a $431.00 target price on shares of Snap-On in a research note on Friday, April 24th. Wall Street Zen cut shares of Snap-On from a "buy" rating to a "hold" rating in a research note on Saturday, February 7th. Robert W. Baird boosted their price objective on shares of Snap-On from $380.00 to $395.00 and gave the stock a "neutral" rating in a research report on Friday, April 24th. Finally, Weiss Ratings restated a "buy (b)" rating on shares of Snap-On in a research report on Monday, April 20th. Four equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $381.20.

Snap-On Stock Performance

NYSE:SNA opened at $366.51 on Thursday. Snap-On has a 1 year low of $301.82 and a 1 year high of $400.88. The firm has a 50 day moving average of $372.59 and a 200-day moving average of $361.98. The company has a current ratio of 3.53, a quick ratio of 2.74 and a debt-to-equity ratio of 0.15. The stock has a market capitalization of $18.99 billion, a P/E ratio of 18.92, a price-to-earnings-growth ratio of 2.59 and a beta of 0.75.

Snap-On Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 10th. Investors of record on Wednesday, May 20th will be given a $2.44 dividend. This represents a $9.76 annualized dividend and a yield of 2.7%. The ex-dividend date is Wednesday, May 20th. Snap-On's payout ratio is 50.39%.

Snap-On declared that its Board of Directors has authorized a share buyback program on Thursday, April 30th that authorizes the company to repurchase $500.00 million in shares. This repurchase authorization authorizes the company to purchase up to 2.6% of its shares through open market purchases. Shares repurchase programs are often an indication that the company's management believes its shares are undervalued.

Insider Buying and Selling

In related news, CFO Aldo John Pagliari sold 7,043 shares of the business's stock in a transaction that occurred on Thursday, February 19th. The shares were sold at an average price of $382.05, for a total value of $2,690,778.15. Following the completion of the transaction, the chief financial officer owned 117,183 shares in the company, valued at $44,769,765.15. The trade was a 5.67% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, VP June C. Lemerand sold 1,378 shares of the company's stock in a transaction on Wednesday, February 25th. The shares were sold at an average price of $387.57, for a total transaction of $534,071.46. Following the sale, the vice president owned 2,913 shares of the company's stock, valued at $1,128,991.41. The trade was a 32.11% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 55,046 shares of company stock worth $20,921,434 in the last quarter. Insiders own 3.80% of the company's stock.

Hedge Funds Weigh In On Snap-On

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its stake in Snap-On by 0.5% in the 4th quarter. Vanguard Group Inc. now owns 6,525,488 shares of the company's stock worth $2,248,683,000 after purchasing an additional 31,073 shares during the period. State Street Corp boosted its stake in Snap-On by 1.3% in the 4th quarter. State Street Corp now owns 2,272,041 shares of the company's stock worth $782,945,000 after purchasing an additional 28,071 shares during the period. First Trust Advisors LP boosted its stake in Snap-On by 3.3% in the 1st quarter. First Trust Advisors LP now owns 2,033,129 shares of the company's stock worth $738,473,000 after purchasing an additional 65,521 shares during the period. Charles Schwab Investment Management Inc. boosted its stake in Snap-On by 2.0% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 2,011,914 shares of the company's stock worth $693,306,000 after purchasing an additional 39,765 shares during the period. Finally, Nordea Investment Management AB boosted its stake in Snap-On by 4.1% in the 4th quarter. Nordea Investment Management AB now owns 1,310,198 shares of the company's stock worth $454,206,000 after purchasing an additional 51,486 shares during the period. 84.88% of the stock is owned by institutional investors and hedge funds.

Snap-On News Roundup

Here are the key news stories impacting Snap-On this week:

• Positive Sentiment: Zacks Research raised its Q1 2028 EPS estimate for Snap-on to $5.24 from $5.18, signaling some confidence in longer-term earnings growth.
• Neutral Sentiment: A separate update kept FY2027 expectations below earlier levels but still projected solid earnings of $20.45 per share, which may be viewed as constructive but not a major catalyst.
• Negative Sentiment: Zacks Research lowered its FY2026 EPS estimate to $19.62 from $19.90, pointing to slightly softer near-term profit expectations.
• Negative Sentiment: The firm also cut several quarterly estimates, including Q2 2026, Q3 2026, Q4 2026, Q1 2027, Q2 2027 and Q3 2027, which may pressure sentiment toward Snap-on’s growth outlook.

About Snap-On

Snap‑On Incorporated NYSE: SNA is a designer, manufacturer and marketer of tools, diagnostic equipment, repair information and shop equipment for professional users. The company's product range includes hand and power tools, tool storage and cabinets, diagnostic scan tools and software, shop equipment such as lifts and tire changers, and specialized specialty tools for automotive, aviation, marine and industrial applications. Snap‑On also offers information and workflow solutions that combine diagnostic data, repair procedures and parts information to support professional technicians.

Founded in 1920 and headquartered in Kenosha, Wisconsin, Snap‑On has established a long history in the professional tools market.

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