Snap On's (NYSE:SNA) profit dropped in the second quarter.
Earnings and Revenue The company posted an EPS above analyst expectations, though revenues fell short of predictions. The company reported EPS of $1.30 a share versus the $1.20 a share estimate and revenues of $737.9 million versus the $767.8 million estimate.
The company's net income for the quarter fell 2.1% to $76.4 million. Revenue climbed 1.5% from $726.7 million in the same period last year.
Company Fundamental Trends With last quarter's falling profit, The company ends a run of at least four consecutive quarters of year-over-year profit increases. The company's revenue has grown during at least each of the past four quarters on a year-over-year basis.
History Against Expectations The company has now topped analyst estimates for at least the last four quarters. It beat by 5 cents in the first quarter, 10 cents in the fourth quarter of the last fiscal year and 15 cents in the third quarter of the last fiscal year.
Official Comment: "We're encouraged by our second quarter 2012 results, which we believe validate the strength of Snap-on's ability to serve 'the serious' - professionals performing critical tasks where the costs and penalties for failure can be high," said Nick Pinchuk, Snap-on chairman and chief executive officer. "We believe the organic sales increase, achieved despite uncertainties surrounding the global macroeconomic environment, particularly in Europe, illustrates ongoing advancements along our defined runways for coherent growth: enhancing the franchise network, expanding in the vehicle repair garage, extending into critical industries, and building in emerging markets. At the same time, we believe the continuing operating margin improvements are a clear reflection of our Snap-on Value Creation Processes and their positive contributions to our enterprise. Finally, I note that the second quarter results and our favorable trends are due to the dedication and efforts of our franchisees and associates worldwide; I thank them for their ongoing support and commitment."
Estimates provided by Zacks Investment Research and company fundamentals from Xignite Financials.