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Enerpac Highlights Business Actions Amid Coronavirus Concern

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Enerpac Tool Group Corp. (EPAC - Free Report) highlighted its business actions to mitigate the adverse impacts of the coronavirus outbreak. Notably, owing to the pandemic and the volatile oil market, the company has been experiencing low global order rates along with end-market uncertainties.

In response to the crisis, Enerpac has been executing several cost-control measures to maintain a healthy capital structure. As noted, the company remains focused on eliminating discretionary expenses, and unnecessary operating costs and capital expenditure in each of its global operations. Also, it applied a two-week furlough program for all of its salaried employees based in the United States apart from suspending its 401k match on a temporary basis. Moreover, the company has suspended its FY20 annual bonus program.

It is worth noting that Enerpac remains open to implement similar measures across its operations outside the United States, in line with employment regulations and local law.

In addition, the company has taken measures to ensure the safety, health and well-being of its employees and partners in all of its operating regions amid the crisis.

Bottom Line

The COVID-19 pandemic has dealt a major blow to the manufacturing sector, which was already reeling under the U.S.-China trade tensions and weak global demand. Factory closures across the globe, supply-chain disruptions, low demand for goods and the impacts of the restrictions imposed by several governments, among others, have been affecting the sector.

Zacks Rank, Price Performance and Estimate Trend

Enerpac, with a $1-billion market capitalization, currently carries a Zacks Rank #3 (Hold).

Year to date, the company’s share price has decreased 34.3% compared with the industry’s decline of 33.6%.

 


In the past seven days, the Zacks Consensus Estimate for its earnings has been lowered by 3.8% to 50 cents for fiscal 2020 and by 2.6% to 76 cents for fiscal 2021.

Key Picks

Some better-ranked stocks from the Zacks Industrial Products sector are Acco Brands Corporation (ACCO - Free Report) , Alarm.com Holdings, Inc. (ALRM - Free Report) and Broadwind Energy, Inc. (BWEN - Free Report) . All the companies currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Acco Brands delivered a positive earnings surprise of 19.04%, on average, in the trailing four quarters.

Alarm.com delivered a positive earnings surprise of 19.30%, on average, in the trailing four quarters.

Broadwind Energy delivered a positive earnings surprise of 10.42%, on average, in the trailing four quarters.

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