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The company posted adjusted earnings per share (EPS) of $4.75, surpassing the consensus estimate of $4.64. However, revenue for the quarter was $1.18 billion, falling short of the anticipated $1.2 billion.
The company’s reported net sales of $1,182.3 million in the first quarter of 2024 represented a marginal decrease of 0.1% from the same quarter in the previous year, with organic sales declining by 0.8%. Despite this slight dip in sales, Snap-on’s operating margin before financial services improved to 22.9% compared to 22.0% in the first quarter of the previous year, reflecting efficient cost management.
Nick Pinchuk, Snap-on chairman and chief executive officer, expressed confidence in the company’s performance amidst challenging economic conditions. “We’re encouraged by our first quarter 2024 results, achieved against the general uncertainty and turbulence of this time,” said Pinchuk. He highlighted the company’s growth with customers in critical industries and the resilience of its markets as key factors contributing to its stability.
Looking ahead, Snap-on anticipates continued growth and resilience in its markets. The company expects to invest between $100 million and $110 million in capital expenditures in 2024, with $21.8 million already incurred in the first quarter. Additionally, Snap-on forecasts its full-year 2024 effective income tax rate to be between 22% and 23%.
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