CZR is likely to register top and bottom-line growth when it reports third-quarter 2023. Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:Ĭaesars Entertainment CZR currently has an Earnings ESP of +37.22% and a Zacks Rank #2. Snap-on has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Our proven model does not conclusively predict an earnings beat for Snap-on this time around. Story continues What the Zacks Model Unveils As a percentage of sales, we expect operating expenses to increase 50 bps year over year to 28.5% in the third quarter. We expect the company’s operating expenses to increase 4.3% year over year to $322.4 million in the third quarter mainly due to elevated costs. These factors are expected to have partly hurt the company's profitability in the to-be-reported quarter. The company has been grappling with the impacts of rising cost inflation, primarily driven by increased raw material expenses and other related costs. However, Snap-on has been facing ongoing challenges due to macroeconomic headwinds, which will likely persist throughout 2023. We expect SNA’s gross margin to expand 90 basis points (bps) to 49.2% in the third quarter, while the operating margin is likely to expand 30 bps year over year to 26.6%. With these strategies in place, the company anticipates a capital expenditure of $100 million in 2023. Management is dedicated to harnessing its strengths within the automotive repair sector and extending its customer reach, with a particular emphasis on automotive repair and vital industries. The company has also been investing in new products and increasing brand awareness globally. Savings from the RCI initiative come from continuous productivity and process improvement plans. The company's emphasis on its Rapid Continuous Improvement (RCI) process has been aimed at enhancing organizational effectiveness, reducing costs, and boosting sales and margins. We expect year-over-year consolidated organic revenue growth of 4% for the third quarter, driven by a 3.6% rise in Commercial & Industrial Group, 4% growth in Snap-on Tools Group, and 5.4% growth in Repair Systems & Information Group. Our model estimates sales growth of 1.6% for Commercial & Industrial Group, 3% for Snap-on Tools Group, and 4.4% for Repair Systems & Information Group in the third quarter. These include enhancing the franchise network, improving relationships with repair shop owners and managers, and expanding into critical industries in emerging markets. Snap-on has been focused on several growth strategies. Snap-On Incorporated price-consensus-eps-surprise-chart | Snap-On Incorporated Quote Key Factors to Note Snap-On Incorporated Price, Consensus and EPS Surprise SNA has a trailing four-quarter earnings surprise of 9.3%, on average. In the last reported quarter, the company posted an earnings surprise of 8%. The consensus estimate for quarterly revenues is pegged at $1.14 billion, indicating a rise of 3.7% from the year-ago quarter’s actual. The consensus mark has been unchanged in the past 30 days. The Zacks Consensus Estimate for third-quarter earnings is pegged at $4.43 per share, suggesting growth of 7% from the year-ago quarter’s reported figure. The company is likely to record top and bottom-line growth when it posts third-quarter results. Snap-on Incorporated SNA is slated to release its third-quarter 2023 results on Oct 19, before market open.
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