Actuant Beats Analyst Estimates on EPS

Seth Jayson, The Motley Fool
Updated

Actuant (NYS: ATU) reported earnings on June 20. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended May 31 (Q3), Actuant met expectations on revenues and beat slightly on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped.


Gross margins shrank, operating margins increased, net margins shrank.

Revenue details
Actuant chalked up revenue of $429.2 million. The 12 analysts polled by S&P Capital IQ expected a top line of $429.7 million on the same basis. GAAP reported sales were 9.3% higher than the prior-year quarter's $392.8 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.60. The 14 earnings estimates compiled by S&P Capital IQ forecast $0.59 per share. GAAP EPS of $0.45 for Q3 were 8.2% lower than the prior-year quarter's $0.49 per share. (The prior-year quarter included -$0.03 per share in earnings from discontinued operations.)

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 38.7%, 50 basis points worse than the prior-year quarter. Operating margin was 15.8%, 80 basis points better than the prior-year quarter. Net margin was 8.0%, 130 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $409.9 million. On the bottom line, the average EPS estimate is $0.54.

Next year's average estimate for revenue is $1.61 billion. The average EPS estimate is $2.08.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 498 members out of 509 rating the stock outperform, and 11 members rating it underperform. Among 163 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 162 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 $33.08.

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The article Actuant Beats Analyst Estimates on EPS originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Actuant. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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