Actuant Beats Estimates on Top and Bottom Lines

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Actuant (NYS: ATU) reported earnings on Dec. 21. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Nov. 30 (Q1), Actuant beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly, and earnings per share grew significantly.

Margins improved across the board.

Revenue details
Actuant booked revenue of $393 million. The 11 analysts polled by S&P Capital IQ expected revenue of $376 million. Sales were 23% higher than the prior-year quarter's $318 million

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.50. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.43 per share. GAAP EPS of $0.50 for Q1 were 42% higher than the prior-year quarter's $0.35 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 38.9%, 60 basis points better than the prior-year quarter. Operating margin was 14.6%, 140 basis points better than the prior-year quarter. Net margin was 9.5%, 140 basis points better than the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods.

Source: S&P Capital IQ. Quarterly periods.

Looking ahead
What does the future hold?

Next quarter's average estimate for revenue is $369 million. On the bottom line, the average EPS estimate is $0.37.

Next year's average estimate for revenue is $1.6 billion. The average EPS estimate is $1.95.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 503 members out of 512 rating the stock outperform, and nine members rating it underperform. Among 178 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 177 give Actuant a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Actuant is outperform, with an average price target of $27.83.

At the time this article was published Seth Jaysonhad no position in any company mentioned here at the time of publication. You can view hisstock holdings. He is the co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio.Motley Fool newsletter serviceshave recommended buying shares of Actuant. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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