Financial Performance - Snap-on's consolidated net sales for 2024 reached $4,707.4 million, a slight decrease from $4,730.2 million in 2023, but an increase from $4,492.8 million in 2022[29]. - Operating earnings before financial services were $1,068.8 million in 2024, representing 22.7% of net sales, an increase from 22.0% in 2023[169]. - Net earnings attributable to Snap-on were $1,043.9 million, or $19.51 per diluted share, in 2024, an increase of $32.8 million or $0.75 per diluted share compared to 2023[171]. - Consolidated net sales for 2024 were $4,707.4 million, a decrease of $22.8 million, or 0.5%, from 2023, driven by a $40.6 million, or 0.9%, organic decline and $5.5 million of unfavorable foreign currency translation[168]. - Gross profit for 2024 was $2,377.9 million, an increase of $28.8 million or 1.2% from $2,349.1 million in 2023, with a gross margin improvement of 80 basis points[186]. - The effective income tax rate on earnings attributable to Snap-on was 22.6% in 2024, slightly up from 22.5% in 2023[192]. Sales by Segment - The tools product category generated $2,546.2 million in sales for 2024, up from $2,528.9 million in 2023 and $2,399.4 million in 2022[29]. - The diagnostics, information, and management systems category saw sales of $1,028.1 million in 2024, compared to $991.2 million in 2023 and $942.4 million in 2022[29]. - Equipment sales totaled $1,133.1 million in 2024, down from $1,210.1 million in 2023 but up from $1,151.0 million in 2022[29]. - The Commercial & Industrial Group's net sales were $1,476.8 million in 2024, an increase of $18.5 million, or 1.3%, from 2023, with operating earnings rising to $242.1 million, a 7.1% increase[173]. - The Snap-on Tools Group's net sales decreased to $1,989.2 million in 2024, down $99.6 million, or 4.8%, with a corresponding decline in operating earnings to $447.3 million, a decrease of 9.4%[174]. - Segment net sales for the Repair Systems & Information Group reached $1,797.9 million in 2024, an increase of $16.7 million or 0.9% from 2023, driven by an organic sales gain of $18.1 million or 1.0%[175]. International Operations - The company markets its products in over 130 countries, with the largest market being the United States, followed by significant presence in Europe and Asia Pacific[18]. - Snap-on's revenues from international operations accounted for 29% of total revenues in 2024, highlighting the importance of non-U.S. markets for future growth[87]. Employee and Workforce - Snap-on employed approximately 13,000 people worldwide as of December 28, 2024, with around 7,300 in the United States and 5,700 outside the United States[68]. - The company is committed to employee development, including competitive compensation, performance-based incentives, and various training programs[73]. Environmental and Sustainability Efforts - The company reported total Scope 1 and Scope 2 greenhouse gas emissions of 89,085 metric tons of CO2e in 2024, with an intensity of 18.9 metric tons of CO2e per million in net sales[71]. - Snap-on's sustainability framework aligns with the principles of the International Financial Reporting Standards Foundation, focusing on energy management and employee health and safety[74]. - The company is committed to continuous improvement in operations, including environmental matters, and has implemented policies to reduce its impact on the environment[71]. Risks and Challenges - The company faces risks related to supply chain disruptions, including price inflation and shortages of raw materials, which could impact operational costs[91]. - The ongoing geopolitical situation, including the conflict in Ukraine, poses risks such as supply chain inefficiencies and increased costs for Snap-on[88]. - Legal and regulatory changes, particularly related to sustainability, could impose additional compliance costs and affect business operations[123]. - Economic conditions and world events, including geopolitical conflicts and supply chain inefficiencies, may negatively impact Snap-on's sales, margins, and net earnings[131]. Cybersecurity - The company's cybersecurity program is designed to detect and respond to threats, with ongoing assessments and testing to ensure effectiveness[136]. - Snap-on's Incident Response Team coordinates responses to cybersecurity incidents, involving cross-functional management and external stakeholders as necessary[137]. - The Audit Committee oversees the management of cybersecurity risks and evaluates the company's risk assessment policies[139]. Strategic Initiatives - The company has expanded its capabilities through coherent acquisitions, enhancing its service offerings to independent repair shops and OEM dealerships[25]. - Snap-on's strategic priorities for 2025 include enhancing the franchise network and expanding into critical industries and emerging markets[164]. - Organic sales growth is a key focus, with management emphasizing the importance of excluding acquisition-related sales and foreign currency translation effects for performance evaluation[167].

Group 1 - The article highlights the positive investment decision of purchasing Snap-on (NYSE: SNA) shares, indicating it as one of the best career choices for building a diversified retirement portfolio [1] - The author emphasizes a long-term investment strategy and expresses a strong interest in discussing investments, showcasing a commitment to research and analysis [1] - The article reflects a personal opinion on investment without constituting professional investment advice, stressing the importance of due diligence by readers [1] Group 2 - The disclosure mentions that the author holds a beneficial long position in Snap-on shares, indicating confidence in the company's performance [1] - The article does not provide any specific financial metrics or performance data related to Snap-on or the broader industry [2]

Core Insights - Snap-on Inc. reported fourth-quarter 2024 results with revenues and earnings exceeding Zacks Consensus Estimates, showing year-over-year growth driven by operations in critical industries and repair shop owners [1][2][4] Financial Performance - Earnings per share reached $4.82, surpassing the Zacks Consensus Estimate of $4.80, and improved by 1.5% from $4.75 in the same quarter last year [2] - Net sales increased by 0.2% year over year to $1.199 billion, exceeding the Zacks Consensus Estimate of $1.189 billion, attributed to a 0.2% rise in organic sales and $2.1 million from acquisitions, partially offset by $2 million from unfavorable foreign currency translation [4] - Gross profit rose 3.2% year over year to $596.1 million, with gross margin expanding by 140 basis points to 49.7%, compared to an expected gross margin of 49.1% [5] - Operating earnings before financial services totaled $265.2 million, up 2.8% year over year, with operating earnings as a percentage of sales expanding by 50 basis points to 22.1% [6] - Consolidated operating earnings, including financial services, were $331.9 million, reflecting a 1.9% year-over-year increase, with operating earnings as a percentage of sales expanding by 30 basis points to 25.5% [8] Segment Analysis - Sales in the Commercial & Industrial Group improved by 4.2% year over year to $379.2 million, driven by a 3.9% rise in organic sales [9] - The Tools Group segment experienced a sales decline of 1.3% year over year to $506.6 million, primarily due to a 1.4% drop in organic sales, offset by a $0.6 million positive impact from foreign currency [10] - Sales in the Repair Systems & Information Group increased by 1.3% year over year to $456.6 million, with organic sales growth of 1.6% [11] - The Financial Services business saw revenues rise by 3.4% year over year to $100.5 million [12] Financial Snapshot - Snap-on ended 2024 with cash and cash equivalents of $1.36 billion and shareholders' equity of $5.4 billion, with a projected capital expenditure of $100 million for 2025 [13] Future Outlook - Management anticipates resilience in markets and operations against uncertainties, expecting progress in 2025 by leveraging capabilities in automotive repair and expanding the customer base [14]

Financial Data and Key Metrics Changes - Overall sales for Q4 2024 were $1,198.7 million, up 0.2% both as reported and organically, marking a return to positive territory [9][50] - Gross margin improved to 49.7%, an increase of 140 basis points from 48.3% last year [10][51] - Operating income (OpCo OI) margin reached 22.1%, up 50 basis points, representing an all-time high for the fourth quarter [10][48] - Earnings per share (EPS) for the quarter was $4.82, up from $4.75 recorded last year [10][53] Business Line Data and Key Metrics Changes - **Commercial and Industrial (C&I)**: Sales of $379.2 million, up 3.9% organically, with operating earnings of $63.5 million, an increase of 17.4% [26][56] - **Tools Group**: Quarterly sales of $506.6 million, down 1.4% organically, with operating earnings of $106.9 million, down 4.1% [32][58] - **Repair System Information (RS&I)**: Sales of $456.6 million, up 1.6% organically, with operating earnings of $121.4 million, an increase of 7.1% [40][62] Market Data and Key Metrics Changes - The vehicle repair market remains robust, driven by the increasing complexity of modern vehicles and an aging car park averaging 12.6 years [12][13] - Sales in critical industries showed positive trends, with gains in aviation and general industries, although mixed results were noted across different regions [21][22] Company Strategy and Development Direction - The company is focused on leveraging its Snap-on value creation process, emphasizing safety, quality, customer protection, innovation, and rapid continuous improvement [24][78] - There is a strategic pivot towards quick payback items in response to customer preferences, particularly in the Tools Group [19][32] - The company aims to expand its position in the vehicle repair market by enhancing its product offerings and maintaining strong customer connections [24][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the vehicle repair market despite ongoing macroeconomic uncertainties [7][74] - The company anticipates continued growth opportunities in both auto repair and critical industries, supported by innovative product development [23][76] - Management highlighted the importance of adapting to customer preferences and maintaining operational strength amid market turbulence [19][34] Other Important Information - Financial services revenue increased to $100.5 million, up 3.4% from the previous year, although operating earnings in this segment decreased slightly [63] - The company reported a year-end cash position of $1.36 billion, reflecting strong cash flow from operations [69] Q&A Session Summary Question: Can you discuss the confidence at the shop level? - Management noted that while confidence in vehicle repair remains high, technicians are cautious due to cash flow concerns and macroeconomic uncertainties [86][90] Question: Are you fully pivoted in making the products you want? - Management indicated progress in the pivot, with a narrowing gap in sales decline, suggesting a positive trajectory [95][96] Question: Can you provide external sales figures for C&I and RS&I? - External sales for RS&I were noted to be stronger, while C&I external sales were approximately half of RS&I's figures [100][101] Question: What is driving the decline in originations? - The decline is primarily attributed to lower sales of big-ticket items, particularly tool storage, as customers prefer quick payback items [106][110] Question: Can you elaborate on the strength in specialty torque? - Management confirmed that specialty torque is a focus area for investment and growth, with recent acquisitions supporting this strategy [115][116]

Snap-On (SNA) came out with quarterly earnings of $4.82 per share, beating the Zacks Consensus Estimate of $4.80 per share. This compares to earnings of $4.75 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 0.42%. A quarter ago, it was expected that this tool and diagnostic equipment maker would post earnings of $4.58 per share when it actually produced earnings of $4.70, delivering a surprise of 2.62%.Over the last four quart ...

Exhibit 99 Snap-on Announces Fourth Quarter and Full Year 2024 Results Diluted EPS of $4.82 for the quarter compares to $4.75 in Q4 2023; Operating margin before financial services in Q4 2024 improves 50 basis points to 22.1%; Sales of $1,198.7 million in the quarter compares to $1,196.6 million last year Operating earnings of $63.5 million in the period compared to $54.1 million in 2023. The operating margin (operating earnings as a percentage of segment sales) improved 180 basis points to 16.7% from 14.9% ...

In its upcoming report, Snap-On (SNA) is predicted by Wall Street analysts to post quarterly earnings of $4.80 per share, reflecting an increase of 1.1% compared to the same period last year. Revenues are forecasted to be $1.19 billion, representing a year-over-year decrease of 0.7%.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this ...

Snap-on Incorporated (SNA) prepares to announce its fourth-quarter 2024 earnings results on Feb. 6, before the opening bell. The Zacks Consensus Estimate for revenues is $1.2 billion, which indicates a drop of 0.7% from the year-ago quarter’s level.The consensus estimate for quarterly earnings has been stable over the past 30 days at $4.77 per share and indicates an increase of 0.4% from the year-earlier quarter’s number. The company has an average trailing four-quarter earnings surprise of 1.6%. It deliver ...

Snap-on Incorporated (SNA) stock has been doing well for a while, recording an increase of 24.5% in a year. This growth comfortably outpaces the broader Consumer Discretionary sector’s return of 13.7% and the Zacks Tools - Handheld industry‘s growth of 11.6% in the same period.Currently priced at $345.60, Snap-on stock is trading at a 7.6% to its 52-week high of $373.90, reached on Nov. 27. However, it is trading at a 36.6% premium to its 52-week low mark.Analyzing Snap-on’s Growth EffortsSNA has been progr ...

Snap-On Incorporated (SNA) is trading at a notably low price-to-earnings (P/E) multiple, below the Zacks Tools Handheld industry and broader Consumer Discretionary averages. SNA's forward 12-month P/E ratio is 17.16X, lower than the industry average of 17.47X and the sector average of 18.97X.SNA Stock P/E PerformanceImage Source: Zacks Investment ResearchThe stock is undervalued compared with its industry peers, offering compelling value to investors looking for exposure to the retail apparel sector.SNA has ...