Altra Industrial Motion Closing Out On A Mixed Note
Summary
- Altra's fourth quarter results included a few curious items, as management's calculation of organic revenue may have understated underlying growth.
- The Automation and Specialty business appeared to have posted healthy double-digit growth on solid underlying automation demand, while Power Transmission Technologies looked a bit soft relative to peers/rivals.
- Results came in at the low end of management's earlier guidance, but margins still compare well to other industrial power/motion companies.
- Regal Rexnord is getting a high-quality business that should create meaningful synergies in attractive markets like automation and precision motion.
- There's really not enough upside left in Altra shares to be worth whatever risk there is that the deal doesn't go through.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.