Snap-on Incorporated SNA maintained its positive earnings surprise streak in second-quarter 2018. The company reported adjusted earnings of $3.11 per share, which surpassed the Zacks Consensus Estimate of $2.95 and improved 19.6% from the year-ago quarter’s number.On a GAAP basis, the company posted earnings of $3.12, which increased 20% on a year-over-year basis. The bottom line benefited from Snap-on’s robust business model and focus on value-creation processes. Also, higher sales owing to gains from acquisitions and currency boosted the company’s performance.Snap-on Incorporated Price, Consensus and EPS Surprise Snap-on Incorporated Price, Consensus and EPS Surprise | Snap-on Incorporated QuoteConsequently, shares of the company gained nearly 2% during pre-market trading. However, this Zacks Rank #4 (Sell) stock has lost 12.4% in the past six months, wider than the industry’s 11.5% decline.Q2 in DetailNet sales in the quarter increased 3.6% to $954.6 million but came slightly below the Zacks Consensus Estimate of $956.3 million. The year-over-year improvement in the metric was driven by organic sales growth of 1.3% along with gains from acquisitions and currency tailwinds.Segment-wise, Commercial & Industrial Group sales improved 9% to $337.8 million. Organic sales were up 4.4%. Increased sales to customers in critical industries along with higher sales at European-based hand tools business drove organic sales. This was somewhat offset by weak sales at power tools.Snap-on’s Tools Group segment’s sales continued to show weakness, declining 0.5% year over year to $411.9 million. Also, organic sales at the segment fell 1.5%, which was partly offset by currency tailwinds. Lower sales at the company’s U.S. franchise business continued to drag the segment’s growth. However, sales in the international franchise business remained flat.Repair Systems & Information Group continued to display strength as sales climbed 1.5% year over year to $343.1 million. Meanwhile, organic sales at the segment improved slightly from the prior-year quarter number. Increase in sales of diagnostics and repair information products to independent repair shop owners drove the segment’s top line. Also, sales to OEM dealerships remained flat. The uptick was largely compensated with lower sales at undercar equipment.Meanwhile, the Financial Services business reported revenues of $82 million, up from $77.7 million in the year-ago quarter.Further, the company’s operating earnings before financial services totaled $193.1 million, up 5.1% from $183.7 million in the prior-year quarter.LiquidityAt the end of the reported quarter, Snap-on’s cash and cash equivalents summed $112.3 million compared with $92 million at 2017 end. The company’s long-term debt came in at $945.4 million at quarter end, up from $753.6 million recorded at the end of 2017.Looking AheadManagement remains impressed with its quarterly results and expects to continue with these encouraging prospects in 2018. Snap-on is also making efforts to revive its performance at the Tools Group division. Additionally, the company expects to leverage on its capabilities in the automotive repair area besides strengthening its overall professional customer base.Based on these factors, Snap-on still expects to incur capital expenditures in the band of $90-$100 million in 2018, of which $38.6 million was spent in the first half of the year. Further, the effective income tax rate is projected in the range of 24-25% for 2018.Better-Ranked Stocks in the Consumer Discretionary SpaceDeckers Outdoor Corporation DECK has pulled off an average positive earnings surprise of 70% in the trailing four quarters. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Wolverine World Wide, Inc. WWW delivered an average earnings beat of 24.9% in the last four quarters and carries a Zacks Rank #2 (Buy).Nutrisystem, Inc. 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(WWW): Free Stock Analysis Report Snap-On Incorporated (SNA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research