U.S. Markets closed

Free Research Report as Actuant's Sales Jumped 7% and Adjusted EPS Surged 22%

Stock Monitor: AZZ Inc. Post Earnings Reporting

LONDON, UK / ACCESSWIRE / July 11, 2018 / If you want access to our free earnings report on Actuant Corp. (NYSE: ATU), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=ATU. The Company reported its third quarter fiscal 2018 operating and financial results on June 20, 2018. The industrial products Company outperformed top- and bottom-line expectations. Additionally, the Company raised its sales guidance for FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:

www.active-investors.com/registration-sg

Active-Investors.com is currently working on the research report for AZZ Inc. (NYSE: AZZ), which also belongs to the Industrial Goods sector as the Company Actuant. Do not miss out and become a member today for free to access this upcoming report at:

www.active-investors.com/registration-sg/?symbol=AZZ

Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Actuant most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=ATU

Earnings Highlights and Summary

For the third quarter of the fiscal year 2018, Actuant's consolidated sales were $317.1 million, 7% higher than $295.4 million in Q3 FY17, and were ahead of analysts' estimates of $305.9 million. The Company's core sales improved 4% on a y-o-y basis in the reported quarter, while foreign currency rate changes increased sales by 4% and the net impact from the Mirage acquisition net of the Viking divestiture reduced sales by 1%.

For Q3 FY18, Actuant reported net earnings of $29.0 million, or $0.48 per share, compared to $22.5 million, or $0.37 per share, in Q3 FY17. The Company's results for the reported quarter included restructuring charges of $1.2 million and a benefit of $4.9 million related to an adjustment to the original provision for the US tax reform based on further IRS clarifications. On the other hand, the results for Q3 FY17 included restructuring charges of $0.4 million and an income tax benefit of $3.2 million.

Excluding these items, Actuant's adjusted diluted earnings per share (EPS) were $0.39 in Q3 FY18 compared to $0.32 in Q3 FY17. The Company's earnings results for the reported quarter exceeded Wall Street's estimates of $0.36 per share.

Segment Results

During Q3 FY18, Actuant's Industrial segment's sales jumped 8% to $108.3 million compared to $100.5 million in Q3 FY17. The segment's results for the reported quarter were benefited by 4% due to favorable currency exchange rates, resulting in a core sales growth of 4% y-o-y. The sales of standard industrial tools remained strong, growing double digits on a global basis, with a broad demand across the diverse set of end markets served, despite tougher comparables. The Industrial segment's adjusted operating profit margin was 23.9%, and were level with the prior year's same quarter.

For Q3 FY18, Actuant's Energy segment's sales were marginally higher at $83.9 million compared to $83.5 million in Q3 FY17. The favorable impact of the weaker US dollar of 3% was offset by a headwind of 2% from the net of the Viking divestiture and Mirage acquisition, while core sales declined 1%. The segment's adjusted operating margin was 8.4% in the reported quarter, substantially higher versus 1.1% in the prior year’s comparable quarter.

Actuant's sales in the Engineered Solutions segment advanced 12% to $124.9 million in Q3 FY18 compared to $111.4 million in Q3 FY17. Excluding the benefit of the weaker US dollar of 5%, the segment's core sales increased 7% y-o-y. The segment's adjusted operating profit margin was 7.2% in the reported quarter compared to 7.3% in the year ago corresponding period, as the higher volumes were offset by higher engineering expenses to support growth, material and labor inflation, and an unfavorable mix.

Financial Position

As of May 31, 2018, Actuant's net debt was approximately $351 million (total debt of $540 million less $189 million of cash), which declined approximately $43 million from the prior quarter. The Company's cash provided by operating activities was $57.7 million versus $37.4 million in the year earlier comparable quarter.

Outlook

For the full fiscal year 2018, Actuant raised its sales guidance and narrowed its adjusted earnings forecasts. For Q4 FY18, Actuant is forecasting sales to be in the range of $290 million to $300 million, reflecting normal seasonal moderation from Q3 FY18. The Company's adjusted EPS are expected to be in the band of $0.32 - $0.37 for the upcoming quarter.

For FY18, Actuant is projecting sales to be in the range of $1.17 billion - $1.18 billion, and adjusted EPS to be in the band of $1.03 - $1.08. The Company's free cash flow is expected to be in the range of $70 million - $75 million for FY18, and would represent a greater than 100% earnings conversion.

Stock Performance Snapshot

July 10, 2018 - At Tuesday's closing bell, Actuant's stock fell 1.03%, ending the trading session at $28.80.

Volume traded for the day: 830.09 thousand shares, which was above the 3-month average volume of 513.84 thousand shares.

Stock performance in the last month - up 13.39%; previous three-month period - up 24.14%; past twelve-month period - up 16.60%; and year-to-date - up 13.83%

After yesterday's close, Actuant's market cap was at $1.74 billion.

The stock has a dividend yield of 0.14%.

The stock is part of the Industrial Goods sector, categorized under the Diversified Machinery industry. This sector was up 0.4% at the end of the session.

Active-Investors:

Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

A-I has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email info@active-investors.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@active-investors.com
Phone number: 73 29 92 6381
Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia

SOURCE: Active-Investors