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LONDON, UK / ACCESSWIRE / July 27, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Snap-on Inc. (NYSE: SNA), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=SNA, following the Company's disclosure of its financial results on July, 20, 2017, for the second quarter fiscal 2017. The tool and diagnostic equipment maker outperformed earnings expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Small Tools & Accessories industry. Pro-TD has currently selected Lincoln Electric Holdings, Inc. (NASDAQ: LECO) for due-diligence and potential coverage as the Company reported on July 25, 2017, its financial results for Q2 2017. Register for a free membership today, and be among the early birds that get access to our report on Lincoln Electric when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on SNA; also brushing on LECO. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

For the second quarter of 2017, Snap-on recorded net sales of $921.4 million, which grew 5.6% compared to sales $872.3 million in Q2 FY16, reflecting a 2.7% organic sales gain and $38.4 million of acquisition-related sales, partially offset by $12.5 million of unfavorable foreign currency translation. The Company's revenue numbers marginally missed analysts' expectations of $921.8 million.

During Q2 FY17, Snap-on'sfinancial services operating earnings totaled $54.6 million on revenue of $77.7 million compared to operating earnings of $49.5 million on revenue of $69.3 million in Q2 FY16. The Company's originations were $270.6 million in the reported quarter, decreasing 3.7% on a y-o-y basis.

Snap-on's operating earnings before financial services were $183.7 million, improving 80 basis points to 19.9% of sales in the reported quarter versus $166.4 million, or 19.1% of sales in the prior year's comparable quarter. The Company's consolidated operating earnings were $238.3 million, improving 100 basis points to 23.9% of revenues compared to $215.9 million, or 22.9% of revenues, in Q2 FY16.

For Q2 FY17, Snap-on'snet earnings totaled $153.2 million, or $2.60 per diluted share, compared to net earnings of $140.1 million, or $2.36 per diluted share, in Q2 FY16. The Company's earnings numbers exceeded Wall Street's expectations of $2.55 per share.

Segment Results

During Q2 FY17, Snap-on's Commercial & Industrial Group segment's sales totaled $310.0 million, up 8.5% on a y-o-y basis, reflecting a 4.7%, organic sales gain; $15.9 million of acquisition-related sales; and $4.9 million of unfavorable foreign currency translation. The segment's operating earnings of $42.7 million in the reported period increased $3.4 million from the prior year's corresponding period while operating margin was 13.8% for both periods.

For Q2 FY17, Snap-on Tools Group segment reported sales of $413.8 million, down 0.7%, on a y-o-y basis, reflecting a 0.5%, organic sales gain and $5.0 million of unfavorable foreign currency translation. The segment's operating earnings totaled $80.6 million in the reported period, growing $4.3 million from the year ago comparable period, while its operating margin was 19.5%, improving 120 basis points from 18.3% in the prior year's same period.

Snap-on's Repair Systems & Information Group segment's sales grew 14.5% to $338.1 million in Q2 FY17, representing an 8.3% organic sales gain; $22.5 million of acquisition-related sales; and $3.7 million of unfavorable foreign currency translation. The division recorded operating earnings of $81.9 million in the reported quarter, gaining $7.4 million on a y-o-y basis, and the operating margin came in at 24.2% for the reported quarter compared to 25.2% in the prior year's same quarter.

Cash Matters

Snap-on's cash provided by operating activities was $127.1 million in Q2 FY17, decreasing $35 million from comparable 2016 levels, primarily due to higher working investment. The Company's net cash used by investing activities was $138.6 million in the reported quarter and included additions to finance receivables of $231.8 million. Snap-on's net cash used by financing activities of $23.4 million included dividend payments to shareholders of $41.1 million and the repurchase of 535,000 shares of common stock for $86.7 million under Snap-on'spreviously announced share repurchase program. On a year-to-date basis, the Company's share repurchases totaled 745,000 shares for $122.5 million.

Snap-on's trade and other accounts receivable increased $46.5 million from its 2016 year-end levels, including $15.4 million of foreign currency translation and $7.1 million from acquisitions. The Company's days-sales-outstanding of 66 days was up compared to 63 days at year-end. Snap-on'sinventories increased $70.9 million from 2016 year-end, primarily to support continued higher customer demand and new product introductions.

At the end of Q2 FY17, Snap-on's cash position of $89 million increased $11.4 million from its 2016 year-end levels. The Company's net debt-to-capital ratio was unchanged from 26.3% at 2016 year-end. As of the end of the reported quarter, the Company had $83.5 million of commercial paper borrowings outstanding.

Outlook

During FY17, Snap-on estimates making continued progress along its targeted path for coherent growth, leveraging capabilities, and expanding its professional customer base in adjacent markets, additional geographies, and other areas, including extending in critical industries. In pursuit of these initiatives, Snap-on expects capital expenditures in 2017 to be in the range of $80 million to $90 million, of which $34.4 million was incurred in H1 2017.

Stock Performance

At the close of trading session on Wednesday, July 26, 2017, Snap-on's stock price slightly rose 0.07% to end the day at $150.04. A total volume of 1.30 million shares were exchanged during the session, which was above the 3-month average volume of 702.33 thousand shares. The Company's shares are trading at a PE ratio of 15.52 and have a dividend yield of 1.89%. At Wednesday's closing price, the stock's net capitalization stands at $8.71 billion.

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