AIMC Misses 2Q Earnings, Rev
Altra Holdings, Inc. (AIMC) reported weak results for the first-quarter 2013 with adjusted earnings per share of 41 cents, declining by a cent year over year. Earnings missed the Zacks Consensus Estimate of 47 cents by 12.8%.
Revenues
Net sales dropped 3.6% year over year to $181.1 million. Reported revenues missed the Zacks Consensus Estimate of $189.0 million. The decline was due to weakness in the capital intensive end markets like metals, mining and energy.
Margins/Costs
Altra Holdings’ cost of sales dropped 4.0% from the year-earlier quarter to $126.7 million in the second quarter. This resulted in a gross margin of 30.0%, increasing 20 basis points (bps) year over year. Selling, general and administrative (SG&A) expense was $32.6 million, up 2.3% year over year. Adjusted income from operations for the quarter was $18.6 million, against $21.4 million in the second quarter of 2012.
Financial Update
Cash and cash equivalents at the end of second-quarter 2013 were $61.5 million, compared with $66.2 million at the end of the preceding quarter.
Subsequent to the quarter, Altra announced a quarterly dividend of 10 cents a share payable on Oct 2, 2013, to the shareholders as on Sep 18, 2013.
Guidance
Altra’s strong balance sheet will enable it to implement acquisition strategies in the future. For the second half of 2013, management believes the company is well positioned to expand its geographical reach as well as product portfolio. However, a lower-than-expected first-half result hampers the annual expectations.
Altra now expects revenues in the range of $715.0 million to $730.0 million in 2013, against $740.0 million to $750.0 million as expected earlier. The company, also lowered its earnings per share expectation to a range of $1.52 to $1.64 from $1.75 to $1.85 as expected before.
Capital expenditure in 2013 is expected in the range of $20.0 million to $23.0 million.
Other Stocks to Consider
Illinois Tool Works Inc. (ITW) released its second-quarter results on Jul 23, 2013. The company reported earnings per share of $1.08, missing the Zacks Consensus Estimate of $1.09 by a penny.
Dover Corporation (DOV) released its second-quarter results on Jul 18, 2013. The company reported earnings per share of $1.36, beating the Zacks Consensus Estimate of $1.29 by 5.4%.
Chart Industries, Inc. (GTLS) is expected to release its second-quarter results before the market opens on Jul 30, 2013. The Zacks Consensus Estimate for the quarter is a loss of 77 cents.
Altra currently carries a Zacks Rank #4 (Sell).
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