Actuant Corp. (ATU) Tops Q3 EPS by 7c, Lowers Guidance

Actuant Corp. (NYSE: ATU) reported Q3 EPS of $0.70, $0.07 better than the analyst estimate of $0.63. Revenue for the quarter came in at $378 million versus the consensus estimate of $376.43 million.

Outlook

Goldstein continued, “Despite experiencing modestly improving order activity across parts of our business, we have been disappointed by the tepid end market demand that has persisted in others. Although we have generated growth on a year-over-year basis, we do not see enough growth and momentum in markets such as mining, offshore mooring, and off-highway equipment, among others, to enable us to meet our original forecast for the fourth quarter. The recent divestiture of the RV business and Viking product line, and the acquisition of Hayes, also resulted in a net reduction to our fourth quarter forecast. We now expect to deliver fiscal 2014 sales and EPS of approximately $1.4 billion and $1.92-1.97, respectively. This revised guidance also takes into account continued unfavorable segment sales mix, accelerated cost reduction and restructuring activities, and a $0.07 per share benefit from the third quarter tax planning. We now anticipate full year free cash flow of approximately $175-185 million, which should again exceed our full year earnings.

This guidance contemplates fourth quarter sales in the $350-360 million range with EPS of $0.48-0.53, compared to $0.46 in the comparable prior year quarter.

Actuant continues to focus on our core strategies of operational excellence, high growth market expansion, Growth + Innovation, and strategic acquisitions. The portfolio management actions this year, as well as multiple facility moves, are focused on simplifying our business. We believe this focus, along with our emphasis on the four macro growth themes of energy, infrastructure, food/farm productivity and natural resources/sustainability, will position us to continue to generate sustainable future growth in sales and earnings."

(Street sees FY14 EPS of $1.99 on revenue of $1.41 billion. Street sees Q4 EPS of $0.61 on revenue of $372.87 million.)

For earnings history and earnings-related data on Actuant Corp. (ATU) click here.

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