Analyst Note
| Dawit Woldemariam |Snap-on’s business continues to show solid performance, despite macroeconomic uncertainty globally. The company managed to grow fourth-quarter sales by 4% year on year to $1.1 billion. Revenue gains in the quarter were supported by solid growth in the tools segment (up over 7% year on year) as well as the repair systems and information business (up over 11% year on year). Operating margins (excluding financial services) expanded about 50 basis points to 21.5% in the quarter, thanks to increased sales volume and pricing, which helped offset elevated costs due to supply chain headwinds. We elected to leave our long-term assumptions largely intact following the earnings print. Our fair value estimate increased to $194 from $192, mainly due to the time value of money since our last update.