Crispr Therapeutics shares tumble after significant earnings miss
NEW YORK -On Thursday, Snap-on Incorporated (NYSE:SNA) reported first quarter earnings and revenue that missed analyst expectations, as economic uncertainty weighed on sales.
Snap-on’s stock price tumbled -5.72% in premarket trading following the earnings release.
The Kenosha, Wisconsin-based company posted adjusted earnings per share of $4.51 for the quarter ended March 29, falling short of the $4.81 consensus estimate. Revenue declined 3.5% YoY to $1.14 billion, below analysts’ projections of $1.2 billion.
Snap-on cited "heightened macroeconomic uncertainty" that led to mixed results across its business segments. The company’s Tools Group saw organic sales decline 6.8% YoY, which it attributed to lower activity in the U.S. market.
"The grassroots economy, particularly the technician customers of the Tools Group, accelerated their reluctance to purchase financed products," said CEO Nick Pinchuk in a statement.
Despite the top and bottom line misses, Snap-on reported a gross margin of 50.7%, up 20 basis points from the prior year period. The company’s Commercial & Industrial and Repair Systems & Information segments both achieved record first quarter operating margins.
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