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.
Altra Industrial (AIMC) Tops Q4 Earnings & Revenue Estimates
Read MoreHide Full Article
Altra Industrial Motion Corp. reported better-than-expected fourth-quarter 2020 results with earnings surpassing estimates by 8.6%. This is the fourth consecutive quarter of earnings beat by the company. Also, its fourth-quarter sales beat estimates by 4.9%.
The machinery company’s non-GAAP earnings in the reported quarter were 76 cents per share, surpassing the Zacks Consensus Estimate of 70 cents. Also, the bottom line rose 15.2% from the year-ago quarter figure of 66 cents.
The company noted that it benefited from healthy demand in wind and Class 8 truck markets in China in the fourth quarter. Also, its cost-reduction measures in the quarter were encouraging.
In 2020, the company’s earnings came in at $2.88 per share, up 0.7% year over year.
Revenue Details
In the reported quarter, Altra Industrial’s revenues were $453.2 million, reflecting growth of 2.6% from the year-ago number.
Foreign currency translation had a positive impact of 2.3 percentage points. Also, organic sales grew 0.3% year over year, backed by strength in several end markets — including transportation, turf & garden, medical equipment, renewable energy, distribution, agriculture and defense. Notably, business in metals, mining and oil and gas declined in the quarter.
The company’s revenues surpassed the Zacks Consensus Estimate of $432 million.
In 2020, the company’s revenues were $1,726, down 5.9% year over year.
Altra Industrial reports revenues under two heads — Automation & Specialty, and Power Transmission Technologies. A brief snapshot of the segmental sales is provided below:
Quarterly revenues generated from Power Transmission Technologies amounted to $207.9 million, declining 5.1% year over year.
Automation & Specialty’s sales were $246.6 million in the fourth quarter, up 10.2% from the year-ago reported quarter.
Margin Profile
In the reported quarter, Altra Industrial’s cost of sales increased 2.4% year over year to $291.3 million. Notably, cost of sales represented 64.3% of net sales. Gross profit was $161.9 million, up 2.9% year over year. Gross margin increased 10 basis points (bps) to 35.7%.
Selling, general and administrative expenses decreased 1.6% year over year to $86.8 million and represented 19.2% of net sales. Research and development expenses were $15.2 million versus $14.7 million in the year-ago quarter.
Non-GAAP adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $96.1 million, the margin being 21.2%. Non-GAAP operating income in the reported quarter increased 7.2% year over year to $77.8 million, with non-GAAP operating margin increasing 80 bps to 17.2%.
Net interest expenses totaled $17.9 million in the reported quarter, reflecting an increase of 4.1% from the year-ago quarter.
Balance Sheet & Cash Flow
Exiting the fourth quarter, Altra Industrial’s cash and cash equivalents were $254.4 million, increasing 6.6% from $238.7 million recorded in the last reported quarter. Long-term debt was $1,408.1 million, reflecting a 4.7% decline from $1,476.9 million in the last reported quarter.
During 2020, the company repaid $160 million of borrowing under its term-loan facility and $100 million under its revolving credit facility. Additional borrowing under its revolving facility totaled $100 million.
In 2020, the company generated net cash of $262.5 million from operating activities, up 2.5% from the year-ago. Capital invested for purchasing property, plant and equipment totaled $33.7 million, decreasing 34.8%. Non-GAAP adjusted free cash flow was $263.5 million versus $204.2 million a year ago.
Dividends
In 2020, the company paid out dividends amounting to $27.8 million, down from $44.4 million distributed in the prior year.
Couple of days before the earnings release, the company announced that its board of directors approved the payment of a quarterly dividend of 6 cents per share. Notably, the quarterly dividend rate pertaining to the first quarter of 2021 will be made on Apr 2, 2021, to shareholders on record as of Mar 18, 2021.
Outlook
Altra Industrial provided its financial projections for 2021. Sales are projected to be $1,790-$1,830 million.
Non-GAAP earnings are expected to be $2.95-$3.15. Also, non-GAAP adjusted EBITDA is likely to be $370-$385 million. The tax rate is still anticipated to be 20-23%. Capital spending is expected to be $45-$50 million.
Altra Industrial Motion Corp. Price, Consensus and EPS Surprise
Franklin Electric delivered a positive earnings surprise of 12.82%, on average, in the trailing four quarters.
SPX FLOW delivered a positive earnings surprise of 161.36%, on average, in the trailing four quarters.
Danaher delivered a positive earnings surprise of 19.86%, on average, in the trailing four quarters.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Altra Industrial (AIMC) Tops Q4 Earnings & Revenue Estimates
Altra Industrial Motion Corp. reported better-than-expected fourth-quarter 2020 results with earnings surpassing estimates by 8.6%. This is the fourth consecutive quarter of earnings beat by the company. Also, its fourth-quarter sales beat estimates by 4.9%.
The machinery company’s non-GAAP earnings in the reported quarter were 76 cents per share, surpassing the Zacks Consensus Estimate of 70 cents. Also, the bottom line rose 15.2% from the year-ago quarter figure of 66 cents.
The company noted that it benefited from healthy demand in wind and Class 8 truck markets in China in the fourth quarter. Also, its cost-reduction measures in the quarter were encouraging.
In 2020, the company’s earnings came in at $2.88 per share, up 0.7% year over year.
Revenue Details
In the reported quarter, Altra Industrial’s revenues were $453.2 million, reflecting growth of 2.6% from the year-ago number.
Foreign currency translation had a positive impact of 2.3 percentage points. Also, organic sales grew 0.3% year over year, backed by strength in several end markets — including transportation, turf & garden, medical equipment, renewable energy, distribution, agriculture and defense. Notably, business in metals, mining and oil and gas declined in the quarter.
The company’s revenues surpassed the Zacks Consensus Estimate of $432 million.
In 2020, the company’s revenues were $1,726, down 5.9% year over year.
Altra Industrial reports revenues under two heads — Automation & Specialty, and Power Transmission Technologies. A brief snapshot of the segmental sales is provided below:
Quarterly revenues generated from Power Transmission Technologies amounted to $207.9 million, declining 5.1% year over year.
Automation & Specialty’s sales were $246.6 million in the fourth quarter, up 10.2% from the year-ago reported quarter.
Margin Profile
In the reported quarter, Altra Industrial’s cost of sales increased 2.4% year over year to $291.3 million. Notably, cost of sales represented 64.3% of net sales. Gross profit was $161.9 million, up 2.9% year over year. Gross margin increased 10 basis points (bps) to 35.7%.
Selling, general and administrative expenses decreased 1.6% year over year to $86.8 million and represented 19.2% of net sales. Research and development expenses were $15.2 million versus $14.7 million in the year-ago quarter.
Non-GAAP adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $96.1 million, the margin being 21.2%. Non-GAAP operating income in the reported quarter increased 7.2% year over year to $77.8 million, with non-GAAP operating margin increasing 80 bps to 17.2%.
Net interest expenses totaled $17.9 million in the reported quarter, reflecting an increase of 4.1% from the year-ago quarter.
Balance Sheet & Cash Flow
Exiting the fourth quarter, Altra Industrial’s cash and cash equivalents were $254.4 million, increasing 6.6% from $238.7 million recorded in the last reported quarter. Long-term debt was $1,408.1 million, reflecting a 4.7% decline from $1,476.9 million in the last reported quarter.
During 2020, the company repaid $160 million of borrowing under its term-loan facility and $100 million under its revolving credit facility. Additional borrowing under its revolving facility totaled $100 million.
In 2020, the company generated net cash of $262.5 million from operating activities, up 2.5% from the year-ago. Capital invested for purchasing property, plant and equipment totaled $33.7 million, decreasing 34.8%. Non-GAAP adjusted free cash flow was $263.5 million versus $204.2 million a year ago.
Dividends
In 2020, the company paid out dividends amounting to $27.8 million, down from $44.4 million distributed in the prior year.
Couple of days before the earnings release, the company announced that its board of directors approved the payment of a quarterly dividend of 6 cents per share. Notably, the quarterly dividend rate pertaining to the first quarter of 2021 will be made on Apr 2, 2021, to shareholders on record as of Mar 18, 2021.
Outlook
Altra Industrial provided its financial projections for 2021. Sales are projected to be $1,790-$1,830 million.
Non-GAAP earnings are expected to be $2.95-$3.15. Also, non-GAAP adjusted EBITDA is likely to be $370-$385 million. The tax rate is still anticipated to be 20-23%. Capital spending is expected to be $45-$50 million.
Altra Industrial Motion Corp. Price, Consensus and EPS Surprise
Altra Industrial Motion Corp. price-consensus-eps-surprise-chart | Altra Industrial Motion Corp. Quote
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks are Franklin Electric Co., Inc. (FELE - Free Report) , SPX FLOW, Inc. (FLOW - Free Report) and Danaher Corporation (DHR - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Franklin Electric delivered a positive earnings surprise of 12.82%, on average, in the trailing four quarters.
SPX FLOW delivered a positive earnings surprise of 161.36%, on average, in the trailing four quarters.
Danaher delivered a positive earnings surprise of 19.86%, on average, in the trailing four quarters.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>