(Reuters) -Snap-On beat third-quarter revenue and profit estimates on Thursday as recovering demand from auto parts companies and repair shops boosted sales for the company’s tool-making products.
The automotive aftermarket, the company’s major source of revenue, continues to see a rebound in demand, as U.S. road travel rose above pre-pandemic levels.
Further, worries over inflation pushed more Americans to hold on to their existing vehicles, increasing the average age of vehicles on the road and driving higher demand for maintenance and repairs.
Snap-On said it saw strong growth during the period, driven by deeper engagement with both automaker dealerships and independent repair shops, alongside significant gains in its software portfolio.
“Despite the current volatility of this time, we believe our results show the diverse opportunities along our runways for growth in activities both within automotive repair and with customers outside the garage,” said CEO Nick Pinchuk.
For the quarter ended September 27, the company reported a revenue rise of 1.1% in the Tools Group segment.
Snap-On’s Repair Systems & Information Group segment revenue rose 9.9% due to increased sales of diagnostic and repair information products to independent repair shop owners and OEM dealerships.
The Kenosha, Wisconsin-based company reported total quarterly revenue of $1.29 billion. Analysts were expecting $1.16 billion, according to data compiled by LSEG.
Its quarterly profit rose to $5.02 per share, above analysts’ estimates of $4.63 per share.
(Reporting by Aatreyee Dasgupta and Abhinav Parmar in Bengaluru; Editing by Vijay Kishore)
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