Snap-On Inc. (NYSE:SNA) reported second-quarter 2024 net sales of $1.179 billion, which declined 1% year over year and missed the consensus of $1.20 billion.
Net sales fell by $11.9 million from 2023, with a $13.5 million organic decline and $5.7 million negative currency impact, partially offset by $7.3 million in acquisition-related sales.
Gross margin was 50.6%, and gross profit declined 1.1% year over year to $597.3 million.
The operating margin before financial services was 23.8%, up 51 bps, and the corresponding income rose by 1.2% to $280.3 million.
Financial services revenue was $100.5 million compared to $93.4 million in 2023 same quarter.
Adjusted EPS was $4.91, below the consensus of $4.94.
Sales by Segments: Commercial & Industrial $372 million (+2.1% Y/Y), Snap-on Tools $482 million (-7.9% Y/Y), and Repair Systems & Information $454.8 million (+0.6% Y/Y).
Snap-On held $1.232 billion in cash and equivalents, and operating cash flow totaled $301.1 million at the end of the quarter.
For 2024, Snap-On expects to make ongoing progress along its defined runways for coherent growth. Projected capital expenditures for the year are $100 million to $110 million, with $45 million already spent. The expected full-year effective income tax rate is between 22%-23%.
"While the general uncertainty continues, we're encouraged by our second quarter 2024 results," said Nick Pinchuk, Snap-on chairman and chief executive officer.
"There have been challenges but, at the same time, there have been substantial opportunities along our runways for growth....We are also committed to forging ahead, by engaging our Snap-on Value Creation Processes, driving advancements and improvements, and we believe those gains, when combined with our possibilities for growth, will maintain and increase our momentum as we proceed to the future."
Price Action: SNA shares traded lower by 2.64% at $268.46 at the last check Thursday.