Snap-On (NYSE: SNA) reported Q1 EPS of $2.39, $0.03 better than the analyst estimate of $2.36. Revenue for the quarter came in at $887.1 million versus the consensus estimate of $879.02 million.

• Net sales of $887.1 million increased $52.9 million, or 6.3%, from 2016 levels, reflecting a $33.4 million, or 4.1%, organic sales gain and $29.1 million of acquisition-related sales, partially offset by $9.6 million of unfavorable foreign currency translation. (See “Non-GAAP Measures” below for a definition of, and further explanation about, organic sales.)
• Operating earnings before financial services of $169.5 million improved 50 basis points to 19.1% of sales as compared to $155.4 million, or 18.6% of sales, last year.
• Financial services revenue of $76.8 million increased $10.5 million from 2016 levels; financial services operating earnings of $52.5 million increased $5.5 million.
• Consolidated operating earnings of $222.0 million improved 50 basis points to 23.0% of revenues (net sales plus financial services revenue) as compared to $202.4 million, or 22.5% of revenues, last year.
• The first quarter effective income tax rate was 30.7% in 2017 and 31.0% in 2016.
• Net earnings of $141.6 million, or $2.39 per diluted share, compared to net earnings of $128.3 million, or $2.16 per diluted share, a year ago.

Outlook

Snap-on expects to make continued progress in 2017 along its defined runways for coherent growth, leveraging capabilities already demonstrated in the automotive repair arena and developing and expanding its professional customer base, not only in automotive repair, but in adjacent markets, additional geographies and other areas, including extending in critical industries, where the cost and penalties for failure can be high. In pursuit of these initiatives, Snap-on expects that capital expenditures in 2017 will be in a range of $80 million to $90 million, of which $18.6 million was expended in the first quarter. Snap-on also anticipates that its full year 2017 effective income tax rate will be comparable to its 2016 full year rate.

For earnings history and earnings-related data on Snap-On (SNA) click here.