In this issue of Short Shrift, our thoughts and the results of our diligence on a name we decided to pass on: Berry Plastics (NYSE:BERY), an update on recent macro-economic data points pertaining to Snap-On, Inc. (NYSE:SNA), and a brief clarification on our Lincoln Electric (Nasdaq:LECO) thesis we gleaned from a conversation with Investor Relations.
Please download the attached report to find our thoughts on SNA's Q1 results, together with our thoughts on the outlook for SNA shares going forward.
In this issue of Short Shrift, please find our thoughts and diligence notes on a pipeline name that we've decided to pass on: Middleby Corporation (Nasdaq:MIDD), as well a brief earnings preview and warning ahead of Snap-On, Inc.'s (NYSE:SNA) earnings report scheduled for Thursday morning. In addition, we have some brief thoughts to share on recent divestitures at TransDigm Group, Inc. (NYSE:TDG).
In this month's issue of Short Shrift, please find our thoughts on recent strength in SNA shares as well as results of our ongoing due diligence, TRN's recent earnings announcement, PSA's earnings announcement, BLDP earnings (as well as the news competitor PLUG Power would be restating financials), and TDG's recently announced divestitures.
On Thursday, February 4th, Snap-On, Inc. reported Q4 EPS of $3.82 vs. a consensus expectation for $2.93 in EPS. Please follow the following link to download our report, with thoughts on: earnings quality, segment results, and outlook.
In this month's installment of "Short Shrift," we provide subscribers with updates on short ideas under our coverage, as well as the results of our ongoing diligence work. In this issue, we discuss our work on the Mattress industry, including thoughts on TPX, PRPL, and CSPR. QSR, BLDP, and SNA found themselves or their competitors in the news, and we provide an ongoing update on our series of diligence conversations with automotive techs, as it pertains to SNA.
This morning before market open, SNA reported earnings. The company hosted a conference call to discuss results at 10am ET / 9am CT. Please download our Q3 Earnings Review to find Antrim's thoughts on the quarter and conference call:
In this month's installment of "Short Shrift," we provide subscribers with updates on short ideas under our coverage, as well as the results of our ongoing diligence work. In this issue, QSR, KNSL, and SNA found themselves in the headlines. As well, Antrim has updated diligence work on KNSL and SNA.
Snap On Inc. is a 100 year old American manufacturer of hand and power tools used primarily by the automotive maintenance and repair end market. The company has developed a reputation for premium priced, high quality, reliable parts, and excellent customer service, provided by its franchised network of mobile “tool truck” product showrooms. Over the last two decades, however, the company has grown increasingly reliant on issuing sub prime dealer credit to its customers in order to finance increasingly expensive tool purchases. Snap On has adopted aggressive accounting policies that disguise lax underwriting standards and elevated credit risk within its credit portfolio. In addition, we believe the company faces competition from lower priced tool offerings, and disruption in its end market as a result of the coronavirus pandemic, and the impact lockdowns have had on miles driven in the United States.