Enerpac Tool Stock Slides After Q1 Miss; Reaffirms FY22 Guidance - Enerpac Tool Group (NYSE:EPAC)

Enerpac Tool Group Corp EPAC reported first-quarter net sales from continuing operations of $130.9 million, an increase of 9.6% year-over-year, missing the consensus of $141.72 million.
Core sales improved 9% Y/Y, with product sales up 14% and service revenues down 3%.
The gross margin contracted by 72 bps to 45.6%. The operating income declined 29.4% Y/Y to $6.41 million and the margin contracted by 270 bps to 4.9%.
The adjusted operating margin was 9.9%, compared to 7.9% a year ago.
Adjusted EPS improved to $0.16 from $0.09 in 1Q21, missing the consensus of $0.21.
Adjusted EBITDA increased 20.5% Y/Y to $17.6 million, and margin expanded by 122 bps to 13.4%.
Net Debt to Adjusted EBITDA from continuing operations was 0.7x at November 30, 2021.
Enerpac Tool's cash used in operating activities was $4.73 million, compared to cash provided of $8.67 million a year ago. Free cash outflow was $7.89 million for the quarter.
The company held $126.53 million in cash and equivalents as of November 30, 2021.
"As we expected, our performance in the first quarter was impacted by global supply chain, logistics and inflationary pressures," said CEO Paul Sternlieb.
FY22 Outlook: Enerpac Tool reiterated its guidance with sales of $590 million - $610 million versus the consensus of $599.62 million.
In a separate press release issued today, Enerpac Tool reported the appointment of Scott Vuchetich as EVP, Marketing and President-Americas.
Price Action: EPAC shares traded lower by 6.77% at $20.39 on the last check Tuesday.

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