On Thursday, Snap-On (NYSE: SNA) posted a lower-than-expected third-quarter sales, as inflationary pressures weighed on demand in the tools segment.
Higher borrowing costs and a rise in the prices of tools – one of the company’s biggest revenue drivers – have led customers to limit purchases.
Sales in Snap-On’s tools segment fell about 3% to $500.5 million, marking the third straight quarter in which the company reported a sales drop in the division.
Total sales fell 1.1% to about $1.15 billion, compared to a year ago, marginally missing the average analysts’ estimate of about $1.16 billion, according to data compiled by LSEG.
However, Snap-On (NYSE: SNA) reported a profit of $4.70 per share, compared with expectations of $4.59.
Lower costs largely aided the profit growth. Snap-On’s operating margin before financial services increased by 80 basis points to 22%.
(Source: ReutersReuters)
