Actuant Third Quarter Earnings Sneak Peek

Actuant Corporation (NYSE:ATU) will unveil its latest earnings on Wednesday, June 20, 2012. Actuant is a global manufacturer and marketer of a range of industrial products and systems.

Actuant Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 59 cents per share, a rise of 15.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 58 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 59 cents during the last month. Analysts are projecting profit to rise by 23.8% versus last year to $2.08.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 6 cents, reporting net income of 43 cents per share against a mean estimate of profit of 37 cents per share.

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A Look Back: In the second quarter, profit rose more than fourfold to $32.2 million (43 cents a share) from $7.9 million (11 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 14.3% to $378 million from $330.7 million.

Wall St. Revenue Expectations: Analysts are projecting a rise of 9.3% in revenue from the year-earlier quarter to $429.2 million.

Stock Price Performance: Between March 20, 2012 and June 14, 2012, the stock price fell $2.65 (-9.2%), from $28.65 to $26. The stock price saw one of its best stretches over the last year between January 31, 2012 and February 7, 2012, when shares rose for six straight days, increasing 8.8% (+$2.22) over that span. It saw one of its worst periods between February 24, 2012 and March 6, 2012 when shares fell for eight straight days, dropping 5.5% (-$1.57) over that span.

Key Stats:

The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 33.3% over the last four quarters.

Analyst Ratings: There are eight out of 13 analysts surveyed (61.5%) rating Actuant a buy.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.91 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company improved this liquidity measure from 1.84 in the first quarter to the last quarter driven in part by an increase in current assets. Current assets increased 4.3% to $573.4 million while liabilities rose by 0.5% to $299.6 million.

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

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