"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.
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.
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