Snap-on Incorporated (NYSE: SNA) saw its shares plummet 7.76% during intraday trading on Thursday, April 17, 2025, following the release of its first-quarter earnings report that fell short of analyst expectations. The tool and equipment manufacturer's disappointing results were attributed to heightened macroeconomic uncertainty and a decline in sales, particularly in its Tools Group segment.

For the quarter ended March 29, 2025, Snap-on reported earnings per share of $4.51, down from $4.91 in the same period last year and below the consensus estimate of $4.84. Total revenue came in at $1.14 billion, representing a 3.5% year-over-year decrease and missing analyst projections of $1.20 billion. The company's organic sales declined by 2.3%, with the remainder of the sales decrease attributed to unfavorable foreign currency translation.

Snap-on's CEO, Nick Pinchuk, highlighted the impact of economic uncertainty on the company's performance, stating, "As such, the grassroots economy, particularly the technician customers of the Tools Group, accelerated their reluctance to purchase financed products." The Tools Group segment experienced a significant 6.8% organic sales decline, reflecting decreased activity in the U.S. market.

While Snap-on saw improvements in its Commercial & Industrial and Repair Systems & Information segments, with the latter achieving record first-quarter operating margins, it wasn't enough to offset the weakness in tool sales. The company's overall gross margin improved slightly to 50.7%, up 20 basis points from the previous year, demonstrating some resilience in its pricing power despite the challenging environment.

Looking ahead, Snap-on expects to continue facing headwinds from economic uncertainty but remains confident in its long-term strategy and market position. The company projects capital expenditures of approximately $100 million for the full year 2025, with $22.9 million already incurred in the first quarter. As Pinchuk noted, "These are times of expanding turbulence. We are, however, confident, holding great belief in the criticality of our markets across essential repair, the considerable capabilities of our battle-tested team, and the power of our continuing investments in product, brand, and people."