Snap-On misses quarterly sales estimates on weak demand for power tools
April 18 (Reuters) -Snap-On SNA.O missed Wall Street estimates for first-quarter sales on Thursday, as vehicle service and repair technicians bought fewer tools and equipment made by the company, offsetting steady demand for its products from auto dealerships.
Higher tool prices are causing U.S. repair technicians to cut back on spending, denting demand for Snap-On's smaller wrenches and ratchets.
The Kenosha, Wisconsin-based company said sales in the tools segment declined about 7% to $500.1 million in the first quarter ended March 30, while operating earnings also fell to $117.3 million from $131.7 million a year ago.
Sales at the company's "Commercial & Industrial" division, which caters to critical industries such as transportation, military, aerospace and power generation, fell to $359.9 million in the quarter from $363.8 million last year due to weak demand for power tools.
Meanwhile, the company saw strong demand for undercar equipment from original equipment manufacturer (OEM) dealerships and independent repair shops, helping boost its profits.
Snap-On expects capital expenditures in 2024 to be $100 million to $110 million as it ramps up spending to tap into new customers, markets and geographic areas.
The company's total sales of $1.18 billion in the first quarter remained flat compared to last year, but came in below analysts' average estimate of about $1.20 billion, according to LSEG IBES data.
Snap-On, whose products include Blackhawk collision repair equipment, John Bean wheel balancers, and Williams hand tools, posted an adjusted profit of $4.75 per share, beating estimates of $4.64.
Reporting by Deborah Sophia in Bengaluru; Editing by Ravi Prakash Kumar
Aloqador aktivlar
Eng oxirgi yangiliklar
Javobgarlikdan voz kechish: XM Group korxonalari har biri faqat ijro xizmatlarini koʻrsatadi va onlayn savdo platformamizdan foydalanish huquqini beradi, bu odamga veb-saytda yoki veb-sayt orqali mavjud boʻlgan kontentni koʻrish va/yoki undan foydalanishga ruxsat beradi hamda uni oʻzgartirishga moʻljallanmagan va uni oʻzgartirmaydi yoki kengaytirmaydi. Bunday kirish va foydalanish huquqi doimo quyidagilarga boʻysunadi: (i) Shartlar va qoidalar; (ii) Risklar haqida ogohlantirish; va (iii) Javobgarlikni toʻliq rad etish. Shuning uchun bunday kontent umumiy maʼlumot sifatida taqdim etiladi. Xususan, shuni esda tutingki, bizning onlayn savdo platformamiz mazmuni moliyaviy bozorlarda biror bitimni amalga oshirishga oid maslahat yoki taklif emas. Har qanday moliyaviy bozorda savdo qilish sizning kapitalingiz uchun jiddiy risk darajasini oʻz ichiga oladi.
Onlayn savdo platformamizda chop etilgan barcha materiallar faqat taʼlim/axborot maqsadlari uchun moʻljallangan va unda moliyaviy, investitsiya soligʻi yoki savdo maslahatlari va tavsiyalar; yoki bizning savdo narxlarimizning qaydlari; yoki har qanday moliyaviy vositalar bilan bitim tuzish maslahati yoki taklifi; yoki sizga kerak boʻlmagan moliyaviy reklama aksiyalari hisoblanmaydi
Har qanday uchinchi tomon kontenti, shuningdek XM tomonidan tayyorlangan kontent, masalan: fikrlar, yangiliklar, tadqiqotlar, tahlillar, narxlar va boshqa maʼlumotlar yoki bu veb-saytda joylashgan uchinchi tomon saytlariga havolalar umumiy bozor sharhi sifatida "boricha" taqdim etiladi va investitsiya maslahatini tashkil etmaydi. Har qanday kontent investitsiya tadqiqoti sifatida talqin qilinsa, siz bunday kontentni investitsiya tadqiqotlarining mustaqilligini ragʻbatlantirish uchun moʻljallangan qonun talablariga muvofiq moʻljallanmagan va tayyorlanmaganligini eʼtiborga olishingiz va qabul qilishingiz kerak, shuning uchun unga tegishli qonunlar va qoidalarga muvofiq marketing kommunikatsiyasi sifatida qaraladi. Mustaqil boʻlmagan investitsiya tadqiqoti va yuqoridagi maʼlumotlarga oid risk haqida ogohlantirishimizni oʻqib chiqqaningizga va tushunganingizga ishonch hosil qiling, unga bu yerdan kirish mumkin.
