Analyst Note| Brian Bernard, CFA, CPA |
Snap-on reported first-quarter results above our expectations, leading us to raise our fair value estimate to $156 from $151. We’ve increased our revenue and margin assumptions in the near term. For 2021, we project revenue to increase 5.6% year over year, with operating margins reaching 18.3%, benefiting from the strengthening auto repair market. Looking at the quarter, sales increased 20.2% year over year to $1.02 billion, largely driven by organic growth (up 16.3% year over year). We continue to be encouraged by the company’s consistent growth over the past few quarters, following the pandemic lows in the second quarter of 2020.