) is slated to report its fourth-quarter and fiscal 2012 results on
September 27, 2012. The Zacks Consensus Estimate for the quarter is
54 cents per share, representing a growth of 8% from 50 cents in
the year-ago quarter. The Zacks Consensus Estimate for fiscal 2012
stands at $2.07, reflecting an expected annual growth of 23% from
the year-ago EPS of $1.68.
The Zacks Consensus Estimate for revenue currently stands at
$410 million for the fourth quarter and $1.61 billion for fiscal
2012, depicting an annual growth of 2% and 11% respectively.
Third Quarter Synopsis
Actuant reported adjusted EPS of 60 cents in the third quarter
of 2012 (ended May 31, 2012), a penny ahead of the Zacks Consensus
Estimate and 19% higher than the year-ago quarter's EPS of 51
cents. Solid results in the U.S. and the Energy segment helped
offset some end-market softness in Europe and China. Including debt
financing costs, EPS in the quarter stood at 45 cents. Including
discontinued operations, EPS in the year ago quarter came in at 49
Total revenue of $429 million was in line with the Zacks
Consensus Estimate but 9% higher than the year-ago revenue of $393
million. Core sales increased 4% and acquisitions contributed 8%.
Weaker Euro had a negative impact of 3%.
The company, during its third quarter earnings call, had put
forward a fourth quarter guidance with sales in the range of $400
million to $410 million and EPS in the band of 50 cents to 55 cents
a share. Earlier this month, Actuant announced that it expects to
incur an asset impairment charge of $60 million in its fourth
quarter 2012, due to poor performance of its Mastervolt business.
Excluding the impairment charge, fourth quarter results are
expected to be at the upper end of the guidance range.
For fiscal 2012, the company estimates sales in the range of
$1.60-1.61 billion and EPS in the $2.03-2.08 range. Free cash flow
is projected to be in the range of $180-185 million.
For fiscal 2013, the company anticipates irregular end-market
demand, particularly in Europe and China. Core sales growth is
estimated at 3-5% with full-year revenues in the band of
$1.665-$1.700 billion. Higher volumes, lower interest expenses and
share repurchases are expected to result in EPS, which could be in
the range of $2.15-$2.30. Free cash flow is expected to be between
$195 and $200 million.
For the fiscal fourth quarter, the Zacks Consensus Estimates for
sales of $410 million is at the upper end of the company guidance.
The Zacks Consensus Estimate for EPS is at 54 cents, closer to the
upper end of the guidance. For fiscal 2012, the Zacks Consensus
Estimates for sales is $1.61 billion, at the upper end of the
guidance and the same for EPS is at $2.07, a penny below the upper
end of the company's guidance.
Estimate Revision Trend
Out of twelve analysts covering the stock, only one and two
revised the estimates upwards for the fourth quarter in the last 7
days and in the last 30 days, respectively. For fiscal 2012, out of
the twelve analysts covering the stock, only one upward revision
was witnessed in the past 7 days as well as past 30 days.
The Zacks Consensus Estimates remained unchanged for both the
fourth quarter and fiscal 2012 over the last 90 days.
Earnings Surprise History
With respect to earnings surprise, Actuant Corporation has
topped the Zacks Consensus Estimate in all the previous four
quarters. The company delivered an average positive earnings
surprise of 10.14%, implying that it has beaten the Zacks Consensus
Estimate by the same magnitude over the last four quarters.
Actuant's acquisition pipeline is robust and remains well
positioned to invest in growth opportunities and also fund share
buybacks based on its strong balance sheet. The company recently
acquired Alfta, Sweden based CrossControl AB, a leading provider of
advanced electronic solutions for user-machine interaction, vehicle
control, and mobile connectivity in critical environments.
CrossControl serves key end markets such as mining, cargo
handling, forestry, construction and rail which align with
Actuant's strategic growth themes including infrastructure and
Earlier in March, the company acquired Turotest, a leader in the
design and manufacture of instrument panels, gauges and senders
serving the Brazilian agriculture and industrial markets. The
acquisition adds to the agriculture platform, which the company has
identified as a key-growth end market.
This acquisition will enable the company to extend its reach
into the growing agriculture, construction and mobile equipment
markets in Latin America. However, currency translation and
uncertainty in Europe remains headwinds. We currently have a Zacks
#2 Rank (short-term Buy recommendation) on the stock.
Headquartered in Menomonee Falls, Wisconsin, Actuant Corporation
designs, manufactures and distributes industrial products and
systems worldwide. It operates through four segments: Industrial,
Energy, Electrical and Engineered Solutions. It competes with
Parker Hannifin Corporation
ACTUANT CORP (ATU): Free Stock Analysis Report
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