FBR Capital Maintains an Outperform/Top Pick' on Actuant (ATU); Solid Trends in Mid- to Late-Cycle Markets Overshadowed by Lumpiness in Electrical

FBR Capital maintains an Outperform/Top Pick' rating on Actuant (NYSE: ATU), PT $30.

FBR analyst says, "We consider Actuant’s seasonally weak F2Q operating performance, on balance, to be modestly better than expectations. Total revenues of $330 million came in 4% above our estimate, with organic revenue growth of 13% significantly higher than our 7% expectation driven by better trends at the company’s mid- to latecycle businesses in Enerpac, Energy, and Engineered Solutions. However, these positive underlying trends were overshadowed by modestly weak performance at the historically volatile Electrical (22% of revenues) segment, where higher input costs (materials, freight) and lumpiness at the recent Mastervolt acquisition resulted in weaker margins and headline operating EPS of $0.30 coming in line with FBR's/consensus' estimate of $0.30. Looking ahead, management increased the bottom end of its full-year EPS guidance by $0.05 to $1.50–$1.60 and boosted organic growth expectations from 8%–10% to 9%–11%."

For more ratings news on Actuant click here and for the rating history of Actuant click here.

Shares of Actuant closed at $26.10 yesterday.

You May Also Be Interested In

• Fiserv (FISV) PT Lowered to $60 at Freedom Broker
• DA Davidson Reiterates Neutral Rating on Timken (TKR)
• Wolverine World Wide (WWW) PT Raised to $31 at UBS on Growth, EPS Upside Potential