The Financial Services decline cut into margin slightly on a net basis but the core business saw operating margin improve by 90 basis points to 21% of revenue. The Construction and Industrial segment its revenue fall by -0.4% but is expected to see a rebound to new highs this year while the Financial services segment revenue fell YOY as well. Repair and Information revenue grew 8.7% YOY followed by a 2.0% increase in Snap-on Tools. The strength was driven by gains in most segments with Repair and Information leading the charge. The key takeaways, however, are that revenue of $1.11 billion is up 3.2% from last year, 16% versus two years ago, and beat the consensus by 180 basis points. Snap-on Incorporated had a solid quarter if not one with robust double-digit growth. How could it not be, trading at only 14X earnings and yielding 2.7% while the market is seeking value and yield? Snap-on Incorporated Exceeds Expectations On All Levels Snap-on may not be the flashiest stock but we view it as a winner for 2022 and beyond. After bobbing along at the $215 level for the last 8 months the company is presenting a deep-value/high-yield combination supported by revenue growth and widening margins in a world where growth and margin improvement is hard to come by. Shares of Snap-on Incorporated (NYSE: SNA) lost their luster in the second half of 2021 but those times may be over. High-yield, Deep-value Snap-on Looks Buyable At These Levels
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