Snap-On shares soar on strong first-quarter earnings | Calamatta Cuschieri

U.S. stocks fell on Thursday, with major indexes declining broadly as the latest round of earnings failed to extend a recent rally

Snap-On shares soar on strong first-quarter earnings. Siemens is investing $500 million in new generation.

U.S. stocks fell on Thursday, with major indexes declining broadly as the latest round of earnings failed to extend a recent rally. However, stocks closed off their lows of the session. The Dow Jones fell 0.3% to 24,665.89. The S&P 500 lost 0.6% and Nasdaq Composite Index drop 0.8% to 7,238.06. The day's losses were widespread, with nine of the 11 S&P 500 sectors ending lower on the day. Seeing particular weakness were the tech and the consumer-staples sectors. 

Helping stocks in the final hour of trading was a report that President Donald Trump had been told he wasn't a target of special counsel Robert Mueller's probe, news that seemed to lessen some of the political uncertainty swirling around markets.

Strong earnings drive up Snap-On shares more than 6%.

Shares of Snap-On soared more than 6% following a favorable earnings announcement on Thursday morning, making it the biggest gainer in the S&P 500.

The tool and diagnostic equipment manufacturer reported first-quarter earnings per share of $2.82, beating analysts’ estimates of $2.72. Revenue also beat estimates, reaching $935.5 million higher than expected revenue of $926.8 million.

Snap-On's net income also rose 15 percent as a result of the U.S. tax overhaul. The company expects a 2018 effective income tax rate of 24 percent to 25 percent, lower than last year's effective income tax rate of 30.7 percent.

The company's gains were the highest in the S&P 500 on Thursday morning.

Siemens is expanding its presence in UAE investing $500 million.

German multinational Siemens is expanding its Middle East presence by investing in digital sphere, to the tune of $500 million over the next three years.

The engineering and software giant announced over the weekend its plans to develop digital innovations in the region. The company plans to build 20 MindSphere Application Centers in 17 countries, where hundreds of Siemens engineers and specialists will work with customers on projects in machine learning and data analysis.

The MindSphere center in Abu Dhabi will focus on developing operational efficiency for customers in areas like water, waste and oil and gas, while the other, to be located in Dubai, will work on solutions for airports, cargo and logistics.

Siemens' investment also includes software grants to university students in the UAE, Egypt and Saudi Arabia to boost digital skills among the region's youth and contribute to a more diversified workforce. These plans fall directly in line with many regional governments' aims to attract private sector job creation while trying to lessen reliance on oil and gas-based revenue.

Other projects included in the investment package involve enhancing digitalization for Dubai's Expo 2020, for which Siemens has been named a Premier Partner for Intelligent Infrastructure and Operations. Local investors are enthusiastic about the initiatives. 

 Philippe Ghanem, CEO of Abu Dhabi-based investment firm ADS Securities noticed that a ‘Dynamic young economies like the UAE can be early adopters and invest in the technology which will drive future development’.

With a current workforce of 8,029 in the Middle East, Siemens is familiar with the region and estimates it has created, on average, 135 jobs per year.

 

Disclaimer: This article was issued by Linda de Luca, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt .The information, views and opinions provided in this article are being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.

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