Actuant Corp Earnings Cheat Sheet: Beats Forecasts

Actuant Corporation (NYSE:ATU) reported net income above Wall Street’s expectations for the first quarter. Actuant is a global manufacturer and marketer of a range of industrial products and systems.

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Actuant Earnings Cheat Sheet for the First Quarter

Results: Net income for Actuant Corporation rose to $37.2 million (50 cents per share) vs. $25.9 million (35 cents per share) in the same quarter a year earlier. This marks a rise of 43.6% from the year earlier quarter.

Revenue: Rose 23.4% to $392.8 million from the year earlier quarter.

Actual vs. Wall St. Expectations: ATU beat the mean analyst estimate of 43 cents per share. It beat the average revenue estimate of $376.3 million.

Quoting Management: Robert C. Arzbaecher, Chairman and CEO of Actuant commented, “Actuant delivered another strong quarter with sales, EPS and cash flow solidly above expectations. In particular, we were pleased with the first quarter’s double digit core sales growth in both the Industrial and Energy segments. Our execution was outstanding as we generated year-over-year EBITDA margin improvement in all four segments while continuing to invest in our Growth + Innovation initiatives. Finally, we completed the repurchase of nearly one million common shares, deploying approximately $20 million of the first quarter’s free cash flow on what we believe is an attractive investment. I want to thank our employees for their efforts in delivering a great start to the year.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 78.1% to $403.4 million in the fourth quarter of the last fiscal year. The figure rose 17.4% in the third quarter of the last fiscal year from the year earlier and climbed 12.4% in the second quarter of the last fiscal year from the year-ago quarter.

The company has now topped analyst estimates for the last three quarters. It beat the mark by 3 cents in the fourth quarter of the last fiscal year and by 5 cents in the third quarter of the last fiscal year.

Margins rose in the fourth quarter of the last fiscal year after falling the quarter before. Gross margin rose 0.6 percentage point to 38.9% from the quarter earlier quarter. In the third quarter of the last fiscal year, the figure rose 4.5 percentage points to 38.4% from the year earlier quarter.

Looking Forward: Over the past ninety days, the average estimate for the second quarter has fallen from 38 cents per share to 36 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year is $1.88 per share, down from $1.92 ninety days ago.

Competitors to Watch: Parker-Hannifin Corp. (NYSE:PH), Crane Co. (NYSE:CR), Omega Flex, Inc. (NASDAQ:OFLX), Sun Hydraulics Corporation (NASDAQ:SNHY), Danaher Corporation (NYSE:DHR), Caterpillar (NYSE:CAT), and General Electric (NYSE:GE).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)