Snap-on Incorporated (NYSE: SNA) saw its shares plummet 7.38% in pre-market trading on Thursday after the tool and equipment manufacturer reported first-quarter results that fell short of analyst expectations.

For the quarter ended March 29, 2025, Snap-on reported earnings per share of $4.51, down from $4.91 in the same period last year and below the FactSet consensus estimate of $4.83. Total revenue came in at $1.14 billion, representing a 3.5% year-over-year decrease and missing analyst projections of $1.20 billion.

The company cited heightened macroeconomic uncertainty as a key factor impacting its performance. CEO Nick Pinchuk noted that the "grassroots economy," particularly technician customers in the Tools Group segment, showed increased reluctance to purchase financed products. This contributed to a 6.8% organic sales decline in the Snap-on Tools Group.

While Snap-on saw improvements in its Commercial & Industrial and Repair Systems & Information segments, with the latter achieving record first-quarter operating margins, it wasn't enough to offset the weakness in tool sales. The company's overall gross margin improved slightly to 50.7%, up 20 basis points from the previous year, demonstrating some resilience in its pricing power despite the challenging environment.

Looking ahead, Snap-on expects to continue facing headwinds from economic uncertainty but remains confident in its long-term strategy and market position. The company projects capital expenditures of approximately $100 million for the full year 2025, with $22.9 million already incurred in the first quarter.