Actuant (ATU) Trims Q3 EPS Outlook on Energy Market Woes

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Premium diversified machinery company, Actuant CorporationATU recently revised its third-quarter fiscal 2017 (ended May 31, 2017) earnings outlook.

Over the last one month, shares of this Zacks Rank #3 (Hold) stock yielded a return of 0.74%, outperforming the loss of 0.76% incurred by the Zacks Machine-Tools & Related Products industry.

Inside Story

As revealed in the latest update, Actuant anticipates that its results in the to-be-reported quarter would benefit from sturdy Industrial and Engineered Solutions segments' business. However, poor upstream offshore demand, weak customer spending and maintenance activities within the Energy segment's businesses might curtail growth.

Based on the existing market conditions, the company reaffirmed its third-quarter fiscal 2017 core sales rate of change and aggregate revenue guidance within the -2 to +1% range and $290-$300 million range, respectively. However, the company trimmed its earnings guidance for the quarter to be reported to the 30-33 cents per share range, as against the prior range of 38-43 cents.

The company is slated to report fiscal third-quarter results on Jun 21.

Moving Ahead

Amid dismal market conditions, Actuant is poised to grow on the back of diligent portfolio management activities and strategic investments designed to boost near-term operational and commercial performances.

Stocks to Consider

Some better-ranked stocks in the industry are listed below:

Caterpillar Inc. CAT delivered a positive average earnings surprise of 40.25% over the trailing four quarters and currently boasts a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Applied Industrial Technologies, Inc. AIT , which sports a Zacks Rank #1 at present, pulled off an average positive earnings surprise of 9.78% over the last four quarters.

Acco Brands Corporation ACCO currently carries a Zacks Rank #2 (Buy) and has an average positive earnings surprise of 79.74% for the past four quarters.

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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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