Earnings from Snap-on and Wabtec

The S&P 500 is up to a new two-month high today. The index has now recouped everything it lost from the August 21 to 24 plunge. This morning, we’ve been as high as 2,046.42.

Thanks to its surprising earnings report, eBay (EBAY) is having a very good day. The shares are currently up close to 13%.

We have five earnings reports today, and two of them were this morning. Snap-on (SNA) reported Q3 earnings of $1.98 per share which was four cents better than estimates.

“We believe our third quarter results continue to confirm Snap-on’s capabilities in serving serious professionals performing critical tasks in workplaces of consequence around the world,” said Nick Pinchuk, Snap-on chairman and chief executive officer. “These results, which include 7.3% organic sales growth and a 12.5% increase in diluted earnings per share, demonstrate continued progress along our defined runways for coherent growth while overcoming headwinds in certain end markets and geographies. The 130 basis point improvement in operating margin before financial services also reflects contributions from our Snap-on Value Creation Processes, which drive ongoing improvements in safety, quality, customer connection, innovation and rapid continuous improvement.

This was a solid quarter. The stock is currently up 2.5% today.

Our big loser today is Wabtec (WAB). The company reported Q3 earnings of $1.02 per share. Wall Street had been looking for $1.04 per share. Revenues rose 1.5% to $809.5 million, which missed estimates of $846.35 million.

For the full-year, Wabtec sees earnings of $4.10 per share (which implies Q4 earnings of $1.05 per share). That’s below the consensus of $4.13 per share. Wabtec also sees full-year revenue growth of 9% which comes to $3.32 billion. That’s below the consensus of $3.37 billion.

The stock gapped downward sharply at the open. At one point, WAB was down 10% on the day. It’s coming back some and is currently down 4%.

Posted by on October 22nd, 2015 at 12:01 pm


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