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 first quarter of 2017. Revenues increased 6.3% y-o-y to $887.1 mn and surpassed consensus estimate of $877 mn. The improvement was driven by 4.1% organic sales growth and acquisitions, which was partially offset by unfavorable foreign currency translation. Operating income before financial services rose 9.1% to $169.5 mn, and operating margin expanded 50 basis points to 19.1%. Earnings per share jumped 10.6% to $2.39 beating analysts’ average projection of $2.34.Snap-on exited Q1 with cash and cash equivalents of $123 mn, up from $77.6 mn at the end of 2016, while long-term debt increased to $755.4 mn from $708.8 mn. In the reported quarter, the company generated operating cash flow of $192.4 mn, up 35.9% y-o-y. A quarterly dividend of 71 cents per share offers annualized dividend yield of 1.6%.To note, M&A deals are an important part of Snap-on’s growth strategy. The recent deals include the purchase of Sweden-based firm Car-O-Liner, a leading global provider of collision repair equipment and information and truck alignment systems, as well as the acquisition of Sturtevant Richmont that is engaged in designing, manufacturing and distributing mechanical and electronic torque wrenches. Moving ahead in 2017, Snap-on plans to continue to enhance its franchise network, expand ties with repair shop owners and managers, and foray into critical industries to strengthen hold in emerging markets. Solid prospects across business segments, a diversified portfolio and impressive traction of the newly launched products, we believe, will continue to add to the company’s strength.I expect shares of Snap-on to continue growth, with medium-term target at $190. $SNA, Snap-On Incorporated / D