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Actuant Q3 Results Exceed Expectations

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Actuant Corporation (NYSE: ATU) announced 44.2 percent drop in profit for the third quarter hurt by 4.6 percent fall in the top line. However, both the adjusted earnings, as well as revenue came in above the Street analysts' expectations. The company's adjusted earnings outlook for the year failed to meet the predictions.

Actuant reported net income of $21.17 million or $0.36 a share for the third quarter, down 44.2 percent from $37.96 million or $0.63 a share in the year-ago quarter. On an adjusted basis, it would have earned $0.40 a share.

Its top line fell 4.6 percent to $305.34 million from $320.1 million in the previous year quarter. Street analysts expected the company to deliver EPS of $0.37 on revenues of $294.23 million.

The company's President and CEO, Randal Baker commented, "Our third quarter results came in modestly better than expected and I am pleased with the execution by our team. The trends by end market remain largely consistent with prior quarters, with growth in our maintenance-driven Hydratight business as well as European truck being more than offset by upstream oil & gas, agriculture and general industrial weakness. Unfavorable segment sales mix and manufacturing underabsorption negatively impacted margins in the quarter."

He added, "This year's strategic tuck-in acquisitions were additive to third quarter sales but neutral to earnings due to related purchase accounting and acquisition transaction costs. End market demand remains sluggish, yet we are focused on the items that we can control, namely accelerating commercial effectiveness, improving operational execution and carefully managing costs to enhance shareholder value."

Moving ahead, Actuant expects adjusted earnings of $1.20-$1.25 a share on revenues of $1.15 billion. Street analysts predict the company to deliver earnings of $1.25 a share and revenue of $1.14 billion.

Posted-In: Earnings News Guidance

 

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