Actuant Corp. Earnings: Short of Revenue Estimate

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Actuant Corporation (NYSE:ATU) reported its results for the fourth quarter. Actuant is a global manufacturer and marketer of a range of industrial products and systems.

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Actuant Corporation Earnings Cheat Sheet

Results: Reported a loss of $16.5 million (23 cents per diluted share) in the quarter. Actuant Corporation had a net income of $41.4 million or 55 cents per share in the year-earlier quarter.

Revenue: Rose 0.5% to $405.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Actuant Corporation reported adjusted net income of 55 cents per share. By that measure, the company beat the mean estimate of 54 cents per share. It fell short of the average revenue estimate of $429.1 million.

Quoting Management: Robert C. Arzbaecher, Chairman and CEO of Actuant commented, “We closed out fiscal 2012 with fourth quarter results at the high end of our expectations, excluding the impairment charge. As anticipated, core sales growth moderated but was positive in the majority of the portfolio. We successfully converted on this sales growth and achieved a 10% increase in EPS despite the toughest comparables of the year from a foreign currency perspective. Our cash flow was outstanding and helped drive free cash flow to net income conversion in excess of 100% for the 12th consecutive year.”

Key Stats:

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by one cent in the third quarter, by 6 cents in the second quarter, and by 7 cents in the first quarter.

Revenue has increased for four consecutive quarters. Revenue increased 9.3% to $429.2 million in the third quarter. The figure rose 14.3% in the second quarter from the year earlier and climbed 23.4% in the first quarter from the year-ago quarter.

The company’s loss in the latest quarter follows profits in the previous three quarters. The company reported a profit of $34.4 million in the third quarter, a profit of $32.2 million in the second quarter and $37.2 million in the first.

Margins were up in the third quarter, following a drop in the previous quarter. Gross margins grew to 38.8%, up 0.4 percentage point from the year-earlier quarter. In the second quarter, the figure rose 0.5 percentage point to 38.7% from the year earlier quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from 54 cents a share to 53 cents over the last thirty days. The average estimate hasn’t changed from $2.08 per share for the fiscal year.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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