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Research Alert: Snap-on Misses On Q1 Earnings; Margins Pressured

-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

SNA's Q1 results disappointed with EPS of $4.69 vs. consensus of $4.75, as gross margins contracted to 50.4% from 50.7% in the prior year. Revenue rose 5.8% Y/Y (+3.4% organically) lifted by higher volumes from critical industries. Commercial & Industrial led performance with 10.8% sales growth and 7.1% organic gains, supported by continued momentum in the specialty torque business aligning with industrial economy recovery. Management cited material cost inflation and unfavorable foreign exchange movements as key headwinds. However, Commercial & Industrial gross margins compressed 230 bps to 40.3% due to tariff and material cost impacts. Tools showed modest recovery with 3.4% organic expansion both domestically and internationally, while gross margins improved 140 bps to 47.7% from volume leverage and productivity initiatives. Repair Systems posted flat organic sales as diagnostic product traction was offset by weak OEM dealership activity, though margins rose 30 bps to 46%.

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Research Alert: CFRA Keeps Strong Buy Opinion On Shares Of Baker Hughes

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