Actuant Earnings: Everything You Must Know Now

Actuant Corporation (NYSE:ATU) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

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Actuant Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 21.57% to $0.62 in the quarter versus EPS of $0.51 in the year-earlier quarter.

Revenue: Decreased 19.81% to $344.21 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Actuant Corporation reported adjusted EPS income of $0.62 per share. By that measure, the company beat the mean analyst estimate of $0.59. It beat the average revenue estimate of $343.71 million.

Quoting Management: Robert C. Arzbaecher, Chairman and CEO of Actuant commented, “As expected, the third quarter represented an inflection point for Actuant as we delivered a 22% increase in EPS from continuing operations and improved sequential sales and profit margins. Solid core growth was achieved in both the Industrial and Energy segments, and the sequentially improved Engineered Solutions sales signal OEM destocking efforts are abating. Due to weak economic conditions, we continue to experience subdued activity in our global industrial markets and inconsistent demand. However, we did a good job balancing cost reduction actions and growth investments, as evidenced by our 19.6% EBITDA margins. Our third quarter EPS also benefitted from both lower interest expense and an effective income tax rate. We have asked a lot of our employees this year and I want to thank our world-class global team for their efforts in delivering the results.”

Key Stats (on next page)…

Revenue decreased 7.06% from $370.37 million in the previous quarter. EPS increased 77.14% from $0.35 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.64 to a profit $0.58. For the current year, the average estimate has moved down from a profit of $2.17 to a profit of $1.93 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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