Actuant Stock Down As Q3 Earnings, Margin Outlook Cut; Backs Revenue View

(RTTNews) - Actuant Corp.'s (ATU) shares fell 6 percent in the extended trading on Thursday after the diversified industrial company trimmed its third-quarter forecast for adjusted earnings per share and operating margin. The company maintained its revenue and core sales outlook.

In the third quarter, the Energy segment's customer maintenance activity and spending levels, as well as upstream offshore demand weakened significantly.

This was despite continued favorable market demand in the Industrial and Engineered Solutions segments with sales and margins at or above expectations.

For the quarter, the company now expects adjusted earnings per share to be in the range of $0.30 to $0.33, down from the previously provided adjusted earnings per share guidance range of $0.38 to $0.43.

The company further expects operating margins well below previous expectations.

Total revenue and the core sales rate of change for the third quarter are anticipated to be in line with its previously provided guidance of $290 million to $300 million and -2% to +1%, respectively.

The company said it is currently evaluating its fourth quarter and full year guidance in light of this, and updated expectations and commentary will be provided in its third quarter earnings release and call on June 21.

Randy Baker, President and CEO stated, "While there is no doubt that delivering results below our earnings guidance is a setback in our timetable for establishing renewed credibility at Actuant, there is equally no doubt that we must focus on investing in the business from both a commercial and operational standpoint. These actions, combined with active portfolio management, will position the Company for long-term success regardless of market conditions."

Actuant settled at $27.20 on Thursday, up 2.26 percent. Following the news, shares lost 5.9 percent in the after hours trading to $25.60.