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Actuant (ATU) to Declare Q4 Earnings: What's in Store?

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Premium diversified machinery company, Actuant CorporationATU is scheduled to report fourth-quarter fiscal 2015 results before the opening bell on Sep 30. Over the last four trailing quarters, the company reported a negative average earnings surprise of 2.26%. However, in third-quarter fiscal 2015, the company reported earnings of 63 cents per share, surpassing the Zacks Consensus Estimate by 18.9%. Let's see how things are shaping up prior to this announcement.

Factors to Influence Q4 Results

Actuant holds a high brand value in the market. Backed by certain strategic initiatives associated with growth and cost savings, the company aims to generate superior results in the to-be reported quarter. Further, the company's capital deployment policy reflects a strong cash position. However, the company remains aware of the fact that new contracts and acquisitions can only enhance its top-line results from fiscal 2016 onward.

Also, Actuant anticipates external market headwinds such as strong U.S. dollar and lower demand in the general industrial, oil & gas, mining and agricultural markets to adversely affect its financial performance in the quarter under review.

Based on the current scenario, the company expects sales in the range of $290-300 million and earnings within 26-31 cents for fourth-quarter fiscal 2015. For full-year 2015, Actuant projects revenues in a range of $1.24-1.25 billion; while lowering its earnings guidance range to $1.55-1.60 per share from the previous projection of $1.65-$1.75.

Earnings Whispers

Our proven model does not conclusively state that Actuant is likely to beat earnings in the quarter under review. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for an earnings beat. That is not the case here as we will see below.

Zacks ESP: Actuant has a 0.00% Earnings ESP for the quarter, as the Most Accurate estimate of 28 cents stands in line with the Zacks Consensus Estimate.

Zacks Rank: Actuant's Zacks Rank #4 (Sell) when combined with a 0.00% ESP makes surprise prediction difficult.

Stocks to Consider

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

Cintas Corporation CTAS , with an Earnings ESP of +1.00% and a Zacks Rank #2.

NN Inc. NNBR , with an Earnings ESP of +2.86% and a Zacks Rank #2.

Allegion plc Ordinary Shares ALLE , with an Earnings ESP of +1.30% and a Zacks Rank #3.

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CINTAS CORP (CTAS): Free Stock Analysis Report

ACTUANT CORP (ATU): Free Stock Analysis Report

NN INC (NNBR): Free Stock Analysis Report

ALLEGION PLC (ALLE): 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 Nasdaq, Inc.


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

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