Snap-On beats revenue estimates on strong demand for tool-making products

Snap-On SNA beat estimates for second-quarter revenue on Thursday as steady demand from auto parts companies and repair shops boosted demand for the company's tool-making products.

The automotive aftermarket, the company's major source of revenue, saw heightened activity during the quarter, as U.S. road travel rose above pre-pandemic levels, while worries over inflation pushed more Americans to hold on to their existing vehicles.

For the quarter ended June 28, the company reported a revenue rise of nearly 2% in the Tools Group segment, citing higher U.S. sales.

Snap-On's Repair Systems & Information Group segment revenue rose 3% due to increased sales of diagnostic and repair information products to independent repair shop owners and OEM dealerships.

Global inflationary pressures and recent tariff uncertainty did, however, trigger a drop in Commercial & Industrial Group's Asia Pacific and European-based hand tools businesses during the quarter, leading to a 6.5% fall in the segment's revenue.

The Kenosha, Wisconsin-based company reported flat quarterly revenue of $1.18 billion. Analysts were expecting $1.16 billion, according to data compiled by LSEG.

On an adjusted basis, it earned $250.3 million in the second quarter, compared with the estimates of $249.1 million.

Quarterly profit per share fell to $4.72 from $5.07 a year ago.