Actuant Earnings: Higher Expenses Shrinks Margins, Profit Declines

Actuant Corporation (NYSE:ATU) reported its results for the third quarter. Actuant is a global manufacturer and marketer of a range of industrial products and systems.

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Actuant Corporation Earnings Cheat Sheet

Results: Net income for Actuant Corporation fell to $34.4 million (45 cents per share) vs. $36.4 million (49 cents per share) a year earlier. This is a decline of 5.4% from the year-earlier quarter.

Revenue: Rose 9.3% to $429.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Actuant Corporation reported adjusted net income of 60 cents per share. By that measure, the company beat the mean estimate of 59 cents per share. Analysts were expecting revenue of $429.1 million.

Quoting Management: Robert C. Arzbaecher, Chairman and CEO of Actuant commented, “We are pleased with the results for the third quarter. As expected, our growth rates moderated from the strong pace of the past nine quarters. We delivered financial metrics at the high end of our guidance range even with the impact of foreign currency headwinds. Solid results in the U.S. and in our later cycle businesses such as Energy more than offset some end market softness in Europe and China, highlighting the benefit of our diversity. We continue to execute on our strategic growth and operations initiatives and our capital structure has never been in better shape. This gives us confidence in our ability to drive continued strong performance. I want to thank our employees across the globe for their help in delivering another solid quarter.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 6 cents in the second quarter, by 7 cents in the first quarter, and by 3 cents in the fourth quarter of the last fiscal year.

Revenue has increased for four quarters in a row. Revenue increased 14.3% to $378 million in the second quarter. The figure rose 23.4% in the first quarter from the year earlier and climbed 78.1% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from 55 cents a share to 56 cents over the last ninety days. Over the past three months, the average estimate for the fiscal year has climbed from $2.01 per to share to $2.08.

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

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