Market Overview

Analyst Sees Actuant Earnings Bottoming In 2017

Share:
Analyst Sees Actuant Earnings Bottoming In 2017

BMO Capital remains on the sidelines of Actuant Corporation (NYSE: ATU), as weakness in key end-markets and mix pressures lead to another weak, albeit in-line, quarter with disappointing guidance.

"We do see earnings bottoming in 2H17, but our reduced estimates, which are at the lower end of guidance, imply the stock is fully valued," analyst Scott Graham wrote in a note.

Actuant's fourth-quarter adjusted EPS fell 18 percent to $0.30, in line with the Street and guidance. Graham noted that this was the 10th quarter in the last 11 in which EPS declined. Sales dropped 8 percent and came in below expectations.

The company guided F2017 EPS at $1.00–$1.20, which was below expectations. Actuant's first-quarter EPS guidance of $0.14–$0.19 was, at the midpoint, >40 percent below the Street's view.

Related Link: Visa Co-Branded Card Off To A Good Start At Costco Wholesale

"We are lowering our F17E by 16 percent to $1.07 and our F18 by 13 percent to $1.23. Our F17 EPS estimate is at the lower end of guidance," Graham continued.

The analyst maintains his Market Perform rating and cut the target price by $2 to $22 given earnings have declined for three straight years with a fourth seemingly on the way in F17. Also, the analyst is not expecting a resumption of "decent earnings growth" until F18.

At time of writing, Actuant was up 4.25 percent at $23.28.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Latest Ratings for ATU

DateFirmActionFromTo
Sep 2019MaintainsNeutral
Sep 2019DowngradesBuyHold
Sep 2019DowngradesOverweightSector Weight

View More Analyst Ratings for ATU
View the Latest Analyst Ratings

Posted-In: BMO CapitalAnalyst Color Earnings News Guidance Price Target Reiteration Analyst Ratings

 

Related Articles (ATU)

View Comments and Join the Discussion!
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com