Altra Holdings Earnings: Here’s Why Shares are Up Now

Altra Holdings, Inc. (NASDAQ:AIMC) 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. Shares are up 0.12%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Altra Holdings, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 12.5% to $0.45 in the quarter versus EPS of $0.40 in the year-earlier quarter.

Revenue: Decreased 3.76% to $185.15 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Altra Holdings, Inc. reported adjusted EPS income of $0.45 per share. By that measure, the company met the mean analyst estimate of $0.45. It missed the average revenue estimate of $185.84 million.

Quoting Management: “The first quarter was in line with our expectations which took into account the generally sluggish demand in some of our end markets and the reduced number of shipping days in the quarter compared with last year,” said Carl Christenson, Altra President and CEO. “We are extremely pleased with the impact of the European restructuring activities started in the second half of last year and the lower interest expense as a result of refinancing the majority of our debt in the fourth quarter of last year. Gross profit increased by 50 basis points year over year to 30.0% and we grew Non-GAAP Net Income by 13.6% to $12.1 million. We are also very pleased to have announced another increase in our dividend to $0.10 per share for the second quarter of 2013.”

Key Stats (on next page)…

Revenue increased 4.5% from $177.17 million in the previous quarter. EPS increased 25% from $0.36 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.44 to a profit $0.50. For the current year, the average estimate has moved up from a profit of $1.73 to a profit of $1.81 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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