Upcoming AWS Coverage on Ingersoll-Rand
LONDON, UK / ACCESSWIRE / January 3, 2017 / Active Wall St. announces its post-earnings coverage on Actuant Corp. (NYSE: ATU). The Company posted its financial results for the first quarter fiscal 2017 (Q1 FY17) on December 21, 2016. The Milwaukee, Wisconsin-based Company's adjusted diluted earnings per share were down on a year-over-year basis; however EPS number beat market consensus estimates. Register with us now for your free membership at: http://www.activewallst.com/register/.
One of Actuant's competitors within the Diversified Machinery space, Ingersoll-Rand PLC (NYSE: IR), is estimated to report earnings on February14, 2017. AWS will be initiating a research report on Ingersoll-Rand in the coming days.
Today, AWS is promoting its earnings coverage on ATU; touching on IR. Get our free coverage by signing up to:
http://www.activewallst.com/registration-3/?symbol=ATU
http://www.activewallst.com/registration-3/?symbol=IR
Earnings Reviewed
In Q1 FY17, Actuant's net sales fell 13% to a $265.79 million from $305.01 million recorded at the end of Q1 FY16. Net sales numbers for Q1 FY17 also fell short of market consensus estimates of $268 million. During the quarter, the Company's core sales were down 14% y-o-y. Furthermore, the Company benefitted 2% from acquisitions net of divestitures, while it faced a 1% headwind from foreign currency translations.
During the reported quarter, the Company's GAAP net earnings came in at $4.97 million, or $0.08 per diluted share, compared to $15.45 million, or $0.26 per diluted share, in prior year's comparable quarter. Furthermore, the Company's adjusted earnings for Q1 FY17 were $12.04 million, or $0.20 per diluted share, compared to $18.65 million, or $0.31 per diluted share, in Q1 FY16. Wall Street had expected Actuant to post adjusted diluted earnings per share of $0.17 per share in the reported quarter.
Operational Metrics
For Q1 FY17, the diversified machinery Company's gross profit stood at $93.07 million compared to $108.56 million in the year ago same period. The Company's selling, administrative, and engineering expenses was down to $68.60 million in Q1 FY17 from $72.91 million in Q1 FY16. The Company reported operating profit of $8.47 million, versus $25.37 million in Q1 FY16. Furthermore, adjusted operating profit as a percentage of net sales fell to 7.2% in Q1 FY17 from 9.8% in the previous year's corresponding period. The Company's EBIDTA also declined to $20.00 million in the reported period from $37.22 million in Q1 FY16. Additionally, adjusted EBITDA as a percentage of net sales stood at 11.6% in Q1 FY17 compared to $13.6% in Q1 FY16.
Segment Performance
In the quarter ended November 30, Actuant's Industrial segment net sales were down by 2%, to $87.29 million from $88.87 million reported in the last year's same quarter. During the quarter, Larzep's acquisition added 2% to net sales, while there was a 4% y-o-y core sales decline. Furthermore, the segment's adjusted operating profit fell to $19.49 million, or 22.3% of segment sales, from $21.26 million, or 23.9% of segment sales, in Q1 FY16.
Energy segment reported sales decline of 26% y-o-y to $84.65 million in Q1 FY17 from $113.76 million in the prior year's comparable quarter. In the reported quarter, the segment's core sales declined 31%, while it faced 2% foreign exchange headwind. However, process & pipeline services acquisition in March 2016 added 7% to segment sale. The Q1 FY17 segment's adjusted operating profit came in at $3.33 million, or 3.9% of segment sales, versus $12.12 million, or 10.7% of segment sales, in Q1 FY16.
The Company's Engineered Solutions segment sales were $93.86 million in Q1 FY17 compared to $102.38 million reported in the year-ago same quarter. The segment's adjusted operating profit came in at $2.83 million, or 3.0% of segment sales, in Q1 FY17 versus $4.94 million, or 4.8% of segment sales, in Q1 FY16.
Cash Matters and Balance Sheet
Actuant generated $12.09 million as cash from operating activities in the reported period compared to $21.31 million in Q1 FY16. The Company ended the quarter with cash and cash equivalents balance of $176.87 million versus $179.60 million as on August 31, 2016. The Company's long-term debt was $554.37 million as on November 30, 2016, compared to $561.68 million as on August 31, 2016. Furthermore, at the end of the reported period Actuant's net debt to EBITDA leverage was 2.7x.
Outlook
For its full year FY17 outlook, Actuant's management reiterated its prior sales guidance range of $1.08 billion to $1.13 billion with core sales down by 2% to 6%. However, the Company raised its adjusted EPS guidance range of $1.10 per share to $1.30 per share from prior guidance range of $1.00 per share to $1.20 per share. Free cash flow during FY17 is projected to be in the range of $85 million and $95 million.
For Q2 FY17, the Company forecasts sales to be in the range of $250 million to $260 million range, with EPS in the range of $0.08 per share to $0.13 per share.
Stock Performance
Actuant's share price finished last Friday's trading session at $25.95, dropping 2.81%. A total volume of 554.23 thousand shares exchanged hands. The stock has advanced 11.66% and 14.78% in the last three months and past six months, respectively. Furthermore, since the start of the year, shares of the company have gained 8.50%. The stock has a dividend yield of 0.15% and currently has a market cap of $1.58 billion.
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