We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Actuant Corporation reported mixed results for second-quarter fiscal 2019 (ended Feb 28, 2019), with earnings beating the Zacks Consensus Estimate and revenues lagging the same.
This industrial tool maker’s adjusted earnings per share in the reported quarter amounted to 19 cents, which surpassed the Zacks Consensus Estimate of 17 cents. On a year-over-year basis, the bottom line rallied 46.2% from the year-ago quarter’s tally of 13 cents. The improvement can be attributed to healthy growth in operating profit and higher margins. Notably, the quarter marked the company’s fourth consecutive quarter of positive earnings beat.
Revenues
Actuant generated sales worth $271.9 million in the reported quarter, down 1.2% from the year-ago quarter’s tally. The company’s organic sales grew 7% in the reported quarter. However, this was more than offset by 4% adverse impact of unfavorable movements in foreign currencies as well as 4% adverse impact from the divestiture of Precision-Hayes International and Cortland Fibron.
Notably, the top line lagged the Zacks Consensus Estimate of $274 million by roughly 0.7%.
Actuant Corporation Price, Consensus and EPS Surprise
The company reports net sales under two segments — Industrial Tools & Services (IT&S) and Engineered Components & Systems (EC&S). The segmental information is briefly discussed below.
Industrial Tools & Services(55% of second-quarter fiscal 2019 net sales): revenues in the segment totaled $149.5 million, up 9.1% from the year-ago quarter’s tally. Core sales rose 12% on a year-over-year basis.
Engineered Components & Systems(45% of second-quarter fiscal 2019 net sales): Revenues in the segment amounted to $122.4 million, down 11.4% from the year-ago quarter’s tally. Core sales in the segment were flat year over year.
Margins Improve Y/Y
In the reported quarter, Actuant’s cost of sales declined 6% year over year to $174.4 million. The figure contributed 64.1% to sales compared with 67.4% in the year-ago quarter. Gross margin improved 330 basis points (bps) year over year to 35.9%. Selling, administrative and engineering expenses increased 3.5% year over year to $70.7 million. As a percentage of sales, it contributed 26% compared with 24.8% in the year-ago quarter.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were $30.1 million, up 12.3% year over year. Adjusted EBITDA margin in the reported quarter was 11.1% versus 9.7% in the year-ago quarter. Adjusted operating income increased 36.2% year over year to $23.3 million and adjusted operating margin grew 240 bps to 8.6%.
Balance Sheet and Cash Flow
Actuant exited the quarter with cash and cash equivalents of $170.4 million, down 16.2% from $203.4 million at the end of the last reported quarter. Long-term debt balance fell 8% sequentially to $455.6 million.
In the quarter under review, the company used cash worth $22.2 million for operating activities, up from $1.6 million in the year-ago quarter. Capital expenditure totaled $8 million compared with $4.6 million in the year-ago quarter.
Events
As disclosed, Actuant completed the divestiture of Precision-Hayes International business on Dec 31, 2018. Further, the company announced its plan to sell the Engineered Components & Systems segment.
Outlook
For fiscal 2019, Actuant reaffirmed adjusted earnings per share projection of $1.09-$1.20. Sales projection has also been reaffirmed at $1.15-$1.19 billion. Free cash flow is expected in the range of $80-$85 million.
For the fiscal third quarter, adjusted earnings are anticipated to be 40-45 cents per share and sales are likely to be $295-$305 million.
DXP Enterprises surpassed estimates thrice in the trailing four quarters, the average being 46.55%.
Roper exceeded estimates in each of the trailing four quarters, the average being 4.96%.
Tetra Tech surpassed estimates in each of the trailing four quarters, the average being 7.34%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
Image: Bigstock
Actuant (ATU) Beats Q2 Earnings, Misses Revenue Estimates
Actuant Corporation reported mixed results for second-quarter fiscal 2019 (ended Feb 28, 2019), with earnings beating the Zacks Consensus Estimate and revenues lagging the same.
This industrial tool maker’s adjusted earnings per share in the reported quarter amounted to 19 cents, which surpassed the Zacks Consensus Estimate of 17 cents. On a year-over-year basis, the bottom line rallied 46.2% from the year-ago quarter’s tally of 13 cents. The improvement can be attributed to healthy growth in operating profit and higher margins. Notably, the quarter marked the company’s fourth consecutive quarter of positive earnings beat.
Revenues
Actuant generated sales worth $271.9 million in the reported quarter, down 1.2% from the year-ago quarter’s tally. The company’s organic sales grew 7% in the reported quarter. However, this was more than offset by 4% adverse impact of unfavorable movements in foreign currencies as well as 4% adverse impact from the divestiture of Precision-Hayes International and Cortland Fibron.
Notably, the top line lagged the Zacks Consensus Estimate of $274 million by roughly 0.7%.
Actuant Corporation Price, Consensus and EPS Surprise
Actuant Corporation Price, Consensus and EPS Surprise | Actuant Corporation Quote
The company reports net sales under two segments — Industrial Tools & Services (IT&S) and Engineered Components & Systems (EC&S). The segmental information is briefly discussed below.
Industrial Tools & Services(55% of second-quarter fiscal 2019 net sales): revenues in the segment totaled $149.5 million, up 9.1% from the year-ago quarter’s tally. Core sales rose 12% on a year-over-year basis.
Engineered Components & Systems(45% of second-quarter fiscal 2019 net sales): Revenues in the segment amounted to $122.4 million, down 11.4% from the year-ago quarter’s tally. Core sales in the segment were flat year over year.
Margins Improve Y/Y
In the reported quarter, Actuant’s cost of sales declined 6% year over year to $174.4 million. The figure contributed 64.1% to sales compared with 67.4% in the year-ago quarter. Gross margin improved 330 basis points (bps) year over year to 35.9%. Selling, administrative and engineering expenses increased 3.5% year over year to $70.7 million. As a percentage of sales, it contributed 26% compared with 24.8% in the year-ago quarter.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were $30.1 million, up 12.3% year over year. Adjusted EBITDA margin in the reported quarter was 11.1% versus 9.7% in the year-ago quarter. Adjusted operating income increased 36.2% year over year to $23.3 million and adjusted operating margin grew 240 bps to 8.6%.
Balance Sheet and Cash Flow
Actuant exited the quarter with cash and cash equivalents of $170.4 million, down 16.2% from $203.4 million at the end of the last reported quarter. Long-term debt balance fell 8% sequentially to $455.6 million.
In the quarter under review, the company used cash worth $22.2 million for operating activities, up from $1.6 million in the year-ago quarter. Capital expenditure totaled $8 million compared with $4.6 million in the year-ago quarter.
Events
As disclosed, Actuant completed the divestiture of Precision-Hayes International business on Dec 31, 2018. Further, the company announced its plan to sell the Engineered Components & Systems segment.
Outlook
For fiscal 2019, Actuant reaffirmed adjusted earnings per share projection of $1.09-$1.20. Sales projection has also been reaffirmed at $1.15-$1.19 billion. Free cash flow is expected in the range of $80-$85 million.
For the fiscal third quarter, adjusted earnings are anticipated to be 40-45 cents per share and sales are likely to be $295-$305 million.
Zacks Rank & Key Picks
Actuant currently carries a Zacks Rank #3(Hold).
Some better-ranked stocks in the same space are DXP Enterprises, Inc (DXPE - Free Report) , Roper Technologies, Inc (ROP - Free Report) and Tetra Tech, Inc (TTEK - Free Report) . While DXP Enterprises sports a Zacks Rank #1 (Strong Buy), Roper and Tetra Tech carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
DXP Enterprises surpassed estimates thrice in the trailing four quarters, the average being 46.55%.
Roper exceeded estimates in each of the trailing four quarters, the average being 4.96%.
Tetra Tech surpassed estimates in each of the trailing four quarters, the average being 7.34%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>