Analyst Note| Dawit Woldemariam |
Snap-on posted strong second-quarter results, showing large gains in both revenue (up 49% year over year) and operating income (up 138% year over year). Most of the uplift was due to an easier comparison with the same quarter a year ago, due to the pandemic. Comparing to prepandemic levels (second quarter of 2019), Snap-on posted 14% year-over-year revenue growth. In addition, the company’s tools and repair systems businesses grew 19% and 14% year over year (versus prepandemic levels), respectively. We now expect revenue to increase 14% year over year in 2021 versus our previous estimate of 11%. As a result, our fair value estimate increased to $168 from $164.