What Happened?

Shares of professional tools and equipment manufacturer Snap-on (NYSE:SNA) fell 8.6% in the morning session after the company reported weak first-quarter 2025 results: Its revenue missed significantly, and its EPS fell short of Wall Street's estimates. The big story was a 3.5% drop in sales, with most of that coming from weaker demand in the U.S. Tools Group. Overall, this quarter could have been better.

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What The Market Is Telling Us

Snap-on’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 6 months ago when the stock gained 8% on the news that the company reported strong third-quarter 2024 results that exceeded analysts' organic revenue and EPS estimates. Management provided encouraging outlook, adding, "We believe that our markets and our operations possess and have demonstrated continuing and considerable resilience against the uncertainties of the current environment." Overall, this was a solid quarter for the company.

Snap-on is down 8.7% since the beginning of the year, and at $305.30 per share, it is trading 17.8% below its 52-week high of $371.35 from November 2024. Investors who bought $1,000 worth of Snap-on’s shares 5 years ago would now be looking at an investment worth $2,585.

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