Earnings Preview: Actuant Corporation

| About: Actuant Corporation (ATU)
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Company Profile

Actuant Corporation designs, manufactures and distributes a range of industrial products and systems. The Industrial segment is primarily involved in the design, manufacture and distribution of branded hydraulic and mechanical tools to the maintenance, industrial, infrastructure and production automation markets.

Actuant Corporation (NYSE:ATU) is scheduled to report its third quarter earnings results on June 20, 2012, before market open.

Technical Overview

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Actuant has a market cap of $1.80 billion and it is currently trading around $26.30 with a 52 week range of $17.47 to $29.97. The stock has 15.91% price performance for the year 2012. The following table provides the key financial ratios for Actuant:

Key Ratio Value
Current Ratio 1.91
PEG 0.95
P/E 13.49
Forward P/E 11.54
Profit Margin 9.26%
Return On Assets (ROA) 7.42%
Return On Equity (ROE) 16.34%

Recent News

  • On Apr. 30, 2012, Actuant announced the completion of its previously announced tender offer and consent solicitation for its 6.875% Senior Notes due 2017 (the "Existing Notes") and redemption of 2% Senior Subordinated Convertible Notes due 2023 (the "Convertible Notes").
  • On Mar. 28, 2012, Actuant announced that it has acquired Turotest, a leader in the design and manufacture of instrument panels, gauges and senders serving the Brazilian agriculture and industrial markets. Turotest, headquartered near Sao Paulo, Brazil, generates annual revenues of approximately $13 million.

Here's a list of recent changes to analyst ratings:

  • On April 17, 2012, SunTrust Robinson Humphrey initiated coverage on Actuant with a NEUTRAL.
  • On March 30, 2012, Moody's upgraded Actuant's CFR/PDR from Ba2 to Ba1.
  • On March 27, 2012, S&P upgraded Actuant from BB to BB+.
  • On March 22, 2012, UBS maintained a BUY rating on Actuant and raised the price target from $31.00 to $33.00.
  • On March 22, 2012, Canaccord Genuity maintained a BUY on Actuant and raised the price target from $11.00 to $13.00.
  • On March 22, 2012, Jefferies reiterated a BUY on Actuant and raised the price target from $33.00 to $34.00.

Analyst Guidance and Earnings History

The third quarter revenues are expected to be $429.21 million when compared to $392.78 million for the same quarter last year. Earnings per share for the third quarter are expected to be 59 cents a share, up from 51 cents a share in the year-ago period.

The average price target from analyst for Actuant is $33.09 with average rating is OVERWEIGHT.

Out of the last 4 quarters, Actuant has met or exceeded the EPS estimates all the 4 times. The following chart shows the Analyst estimates history and the actual EPS results:

The following chart shows the annual summary of Sales and Net income for Actuant:

Sources: Some of the data is taken from Google Finance, Yahoo Finance, Nasdaq, Finviz and investor sites.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in ATU over the next 72 hours.

Additional Disclosure: I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research.