Actuant Earnings: What Investors Need to Know

Actuant Corporation (NYSE:ATU) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Actuant Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 4.17% to $0.5 in the quarter versus EPS of $0.48 in the year-earlier quarter.

Revenue: Decreased 19.25% to $327.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Actuant Corporation reported adjusted EPS income of $0.5 per share. By that measure, the company missed the mean analyst estimate of $0.5. It missed the average revenue estimate of $328.79 million.

Quoting Management: Commenting on the full year results, Arzbaecher stated, “While our performance in fiscal 2013 was impacted by weak global economic conditions, the sequential improvement throughout the year was encouraging. Both Industrial and Energy delivered full year core sales growth and we acquired approximately $90 million of revenue in the higher growth energy market. As a result of our portfolio management, cost control and operational improvement efforts, EBITDA margins, excluding acquisition costs, exceeded 20% by the end of the fiscal year. We generated record free cash flow of $205 million and free cash flow to net earnings conversion in excess of 125%. This allowed us to deploy $235 million in acquisitions and $42 million in share repurchases, yet maintain a year-end net debt to EBITDA leverage of just 1.3X. In summary, despite poor economic conditions, Actuant’s employees executed well and I am appreciative of their efforts.”

Key Stats (on next page)…

Revenue decreased 4.91% from $344.21 million in the previous quarter. EPS decreased 19.35% from $0.62 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 $0.44 to a profit $0.43. For the current year, the average estimate has moved down from a profit of $1.89 to a profit of $1.88 over the last ninety days.

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