Snap-on Incorporated (SNA), a US-based manufacturer of tools and equipment for automotive service industry and other industrial users, issued solid financials for the third quarter of 2016. Revenues increased 1.5% y-o-y to $834.1 mn, slightly below consensus estimate. However, excluding acquisition-related expenses and unfavorable foreign currency translation effects, organic revenues rose 2.6%. Snap-on Tools Group revenues continued to show strength and grew 4.4% driven by solid performance of both the US and international franchise operations, with organic sales in this segment rising by impressive 5.6%. Repair Systems & Information revenues rose 1.1% on the back of higher sales of diagnostics and repair information products. Commercial & Industrial Group sales recovered 0.3%, primarily due to strong performance in the European-based hand tools business, which was mostly offset by adverse foreign currency fluctuations. Operating profit before financial services grew 9.7% to $157.6 mn, and operating margin expanded 140 basis points to 18.9%. Adjusted earnings per share jumped 12.1% to $2.22 beating analysts’ average projection of $2.15.Snap-on exited Q3 with cash and cash equivalents totaled $117.5 mn. Long-term debt was $713.4 mn representing a significant decline from $861.7 mn at the end of 2015. A quarterly dividend was 61 cents per share, which offers annualized dividend yield of 1.5%.My outlook for Snap-on remains positive. The company expects to make continued progress during the balance of 2016 along its defined runways for coherent growth, leveraging capabilities already demonstrated in the automotive repair arena and developing and expanding its professional customer base, not only in automotive repair, but also in adjacent markets, additional geographies and other areas, including in critical industries, where the cost and penalties for failure can be high. In pursuit of these initiatives, Snap-on now anticipates that capital expenditures in 2016 will approximate $80 mn, of which $56.6 mn was incurred through the end of Q3.Solid Q3 results helped Snap-on’s shares to break $150 resistanse level as well as 50-day moving average. I expect the stock to cintinue to rise, with mediun-term target at $168.. $SNA, Snap-On Incorporated / 1440