Snap-on Inc. (SNA), a leading manufacturer of tools and equipment, reported a 5.09% decline in its stock price during pre-market trading on Thursday, February 6, 2025. The plummet was triggered by the company's fourth-quarter 2024 financial results, which revealed a weaker performance in its Tools Group segment.

For the quarter ended December 31, 2024, Snap-on reported net earnings of $258.1 million, or $4.82 per diluted share, compared to $255.3 million, or $4.75 per diluted share, in the same quarter last year. While the earnings per share surpassed analysts' estimates, the company's net sales remained flat at $1.20 billion, in line with expectations.

The Snap-on Tools Group, which provides mobile tools for vehicle service and repair technicians, saw a 1.4% decline in quarterly net sales, attributed to lower activity in the U.S. amid the recovering inflationary environment. The segment's operating earnings fell to $106.9 million, compared to $111.0 million in the prior-year quarter, resulting in an operating margin of 21.1%, down from 21.6% a year ago.

Despite the challenges faced by the Tools Group, Snap-on's other segments performed better. The Commercial & Industrial Group reported a 3.9% organic sales increase, driven by higher sales to customers in critical industries, particularly in the specialty torque arena. The Repair Systems & Information Group saw a 1.6% organic sales growth, benefiting from increased activity with OEM dealerships and higher sales of diagnostic and repair information products to independent repair shop owners and managers.

Nick Pinchuk, Snap-on's Chairman and Chief Executive Officer, expressed optimism about the company's prospects, stating, "We'll enhance the franchise network by further refocusing our product development, manufacturing, and marketing, meeting the demands of the day, extend to critical industries by sharpening our ability to take full advantage of the growing need for customized solutions, and expand our already prominent position with shop owners and managers by serving the rising complexity of vehicle repair."