AIMC Beats on Q3 Earnings, Rev - Analyst Blog

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Altra Holdings, Inc. ( AIMC ) reported improved year-over-year results for the third-quarter of 2013. The company reported adjusted earnings per share of 40 cents, registering an increase of 17.6% year over year. Earnings also beat the Zacks Consensus Estimate of 37 cents by 8.1%.  

On a GAAP basis, the company reported earnings per share of 39 cents, beating the year-ago earnings of 32 cents by 21.9%.

Revenues

Net sales increased 0.6% year over year to $175.4 million in the third quarter. Reported revenues marginally beat the Zacks Consensus Estimate of $175.0 million. The improvement in revenues comes after two quarters of year-over-year revenue declines.

Margins/Costs

Altra Holdings recorded a gross profit margin of 30.6%, increasing 80 basis points (bps) year over year. Selling, general and administrative (SG&A) expense was $31.7 million, up 2.9% year over year. Adjusted income from operations for the quarter was $19.3 million, against $18.6 million in the third quarter of 2012.

Refinancing activities undertaken in the fourth quarter of 2012 helped the company reduce its interest expense by 61.3% year over year to $2.6 million.

Balance Sheet/Cash Flow

Cash and cash equivalents at the end of third-quarter 2013 were $70.3 million, compared with $61.5 million at the end of the preceding quarter. Long-term debt at the end of the quarter stood at $181.1 million, against $195.4 million in the second quarter of 2013.

Nine months ended Sep 28, 2013, Altra generated cash flow from operations of $62.2 million, compared with cash flow of $54.5 million in the nine months ended Sep 29, 2012. The company incurred capital expenditure of $14.4 million in the first nine months of 2013, compared with $25.2 million in the year-ago comparable period.

Guidance

Altra expects to witness organic growth in 2014 on the back of acquisitions. In 2014, management believes the company is well positioned to expand its geographical reach as well as product portfolio. Additionally, the company expects to achieve success with its strategic initiatives to control costs, and thereby improve earnings.

Altra now expects revenues in the range of $710.0 million to $720.0 million in 2013, against $715.0 million to $730.0 million as expected earlier. The company has narrowed its expected earnings per share range by increasing the lower limit. Altra now expects adjusted earnings per share in the range of $1.58 to $1.64, compared with previously expected range of $1.52 to $1.64.

Capital expenditure expectations in 2013 have been slashed to a range of $19.0 million to $21.0 million, from $20.0 million to $23.0 million.

Other Stocks to Consider

Altra currently carries a Zacks Rank #4 (Sell). Other stocks worth a look in the industry include Colfax Corporation ( CFX ), IDEX Corporation ( IEX ) and Parker-Hannifin Corporation ( PH ). All these stocks carry a Zacks Rank #2 (Buy).



ALTRA HOLDINGS (AIMC): Free Stock Analysis Report

COLFAX CORP (CFX): Free Stock Analysis Report

IDEX CORP (IEX): Free Stock Analysis Report

PARKER HANNIFIN (PH): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: AIMC , CFX , IEX , PH

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