Altra Holdings, Inc.
) reported weak results for the first-quarter 2013 with adjusted
earnings per share of 41 cents, declining by a cent year over
year. Earnings missed the Zacks Consensus Estimate of 47 cents by
Net sales dropped 3.6% year over year to $181.1 million.
Reported revenues missed the Zacks Consensus Estimate of $189.0
million. The decline was due to weakness in the capital intensive
end markets like metals, mining and energy.
Altra Holdings' cost of sales dropped 4.0% from the
year-earlier quarter to $126.7 million in the second quarter.
This resulted in a gross margin of 30.0%, increasing 20 basis
points (bps) year over year. Selling, general and administrative
(SG&A) expense was $32.6 million, up 2.3% year over year.
Adjusted income from operations for the quarter was $18.6
million, against $21.4 million in the second quarter of 2012.
Cash and cash equivalents at the end of second-quarter 2013
were $61.5 million, compared with $66.2 million at the end of the
Subsequent to the quarter, Altra announced a quarterly
dividend of 10 cents a share payable on Oct 2, 2013, to the
shareholders as on Sep 18, 2013.
Altra's strong balance sheet will enable it to implement
acquisition strategies in the future. For the second half of
2013, management believes the company is well positioned to
expand its geographical reach as well as product portfolio.
However, a lower-than-expected first-half result hampers the
Altra now expects revenues in the range of $715.0 million to
$730.0 million in 2013, against $740.0 million to $750.0 million
as expected earlier. The company, also lowered its earnings per
share expectation to a range of $1.52 to $1.64 from $1.75 to
$1.85 as expected before.
Capital expenditure in 2013 is expected in the range of $20.0
million to $23.0 million.
Other Stocks to Consider
Illinois Tool Works Inc.
) released its second-quarter results on Jul 23, 2013. The
company reported earnings per share of $1.08, missing the Zacks
Consensus Estimate of $1.09 by a penny.
) released its second-quarter results on Jul 18, 2013. The
company reported earnings per share of $1.36, beating the Zacks
Consensus Estimate of $1.29 by 5.4%.
Chart Industries, Inc.
) is expected to release its second-quarter results before the
market opens on Jul 30, 2013. The Zacks Consensus Estimate for
the quarter is a loss of 77 cents.
Altra currently carries a Zacks Rank #4 (Sell).
ALTRA HOLDINGS (AIMC): Free Stock Analysis
DOVER CORP (DOV): Free Stock Analysis Report
CHART INDUSTRIE (GTLS): Free Stock Analysis
ILL TOOL WORKS (ITW): Free Stock Analysis
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