Snap-On US enjoyed a huge hike in share prices as they soared by more than 9%.
Tool and diagnostic equipment franchise, Snap-On, has had a great start to 2018, enjoying profit and share price hikes in the first quarter.
The share price rose after Snap-On announced that its earnings per share were $2.82, which is over and above Wall Street’s $2.72 estimate. Following the announcement, its share price shot up by 9%, which means it was the biggest gainer in the S&P 500 index.
Snap-On also beat Wall Street’s first-quarter revenue estimate of $926.8million – it actually earned $935.5million.
This huge success is particularly impressive when you consider that the stock market has been declining since the start of 2018. Shares have dropped by 18% since January, and despite this general trend, Snap-On has seen its share prices rise demonstrably.
The success is set to continue for Snap-On in the wake of the US tax restructure. The group expects its 2018 effective income tax rate to be around 24% to 25%, which is lower than last year’s 30.7%.
Snap-On also enjoyed success through 2017, which gave it a strong platform for its last quarter achievements. Organic sales had grown by 2.3% and net sales increased by $69.7million.
This growing firm already operates in more than 130 countries around the world. It has 4,900 mobile stores worldwide and, in the US alone, it has 3,400 franchise vans. More than 12,600 people are employed by Snap-On and the number is rising.
Snap-On is a long-established company that has grown from a single manufacturer to become a worldwide franchise. It was founded in 1920, named the Snap-On Wrench Company. At first, it made ten sockets that would attach to five interchangeable handles, transforming the tool industry. Founded on the grounds on innovation, Snap-On has become a market leader. It boasts more than 65,000 SKUs in its product line and 2,300 active or pending patents globally.
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