Altra Industrial Motion Misses Q3 Estimates, Cuts FY21 Outlook Citing Supply Chain Challenges

Altra Industrial Motion Misses Q3 Estimates, Cuts FY21 Outlook Citing Supply Chain Challenges
  • Altra Industrial Motion Corp AIMC reported third-quarter FY21 sales growth of 7.2% year-over-year to $469.3 million, +5.8% on an organic basis, missing the consensus of $470.98 million.
  • Adjusted EPS decreased to $0.80 from $0.87 in 3Q20, missing the consensus of $0.81.
  • Gross margin contracted by 130 bps to 36.2%. The operating margin declined by 170 bps to 13.2%, and the adjusted operating margin declined by 240 bps to 17.2%.
  • Altra Industrial generated cash from operating activities year-to-date of $170.1 million, compared to $161.8 million a year ago. Free cash flow of $144.5 million.
  • Adjusted EBITDA decreased by 4.7% Y/Y to $97 million, and margin contracted by 260 bps to 20.7%.
  • Additionally, the company also announced Chief Financial Officer Christian Storch will retire effective January 31, 2022. Altra's Vice President of Finance, Corporate Controller, and Treasurer, Todd Patriacca, will succeed him as CFO.
  • The company expects supply chain challenges playing out globally to continue to impact the results.
  • FY21 Outlook: Altra Industrial expects sales of $1.88 billion - $1.90 billion, (prior $1.89 billion - $1.92 billion) versus the consensus of $1.91 billion.
  • GAAP EPS of $2.22 - $2.31 (previous view $2.28 - $2.41). Non-GAAP EPS of $3.25 - $3.35 (prior $3.30 - $3.46) against the consensus of $3.51.
  • It expects adjusted EBITDA of $390.0 million - $400.0 million (prior $395 million - $405 million).
  • Price Action: AIMC shares closed lower by 0.02% at $57 on Thursday.

Posted In: BriefsEarningsNewsGuidance