Actuant Updates FY16 Guidance; Expects Lower Level Of Activity In Q4

(RTTNews) - Actuant Corp. (ATU) announced, for the full year, sales are expected to be approximately $1.150 billion and adjusted EPS in the range of $1.20-1.25. In March, the company projected its full year sales to be in the range of $1.135-1.150 billion and EPS of $1.25-1.35. Analysts polled by Thomson Reuters expect the company to report profit per share of $1.25 on revenue of $1.14 billion. Analysts' estimates typically exclude special items.

Actuant announced the company now projects fourth-quarter sales to be in the $270-280 million range, with adjusted EPS of $0.28-0.33 based on an anticipated 9-10% consolidated core sales decline. Analysts expect the company to report profit per share of $0.36 on revenue of $282.89 million.

Randal Baker, President and CEO of Actuant, said: "We have seen stabilization in several of our end markets, yet upstream oil & gas and agriculture, in particular, continue to experience reduced spending, pricing and unpredictable demand levels. In addition, while our maintenance driven energy offerings have performed above expectations throughout the first nine months of fiscal 2016, we caution that demand is lumpy by region and end customer and we are currently expecting a lower level of activity in the fiscal fourth quarter than contemplated in our prior outlook."

The company said it is confident in its ability to generate fiscal 2016 free cash flow in excess of 100% of net earnings, and anticipate free cash flow of approximately $105 million.

Third quarter net earnings were $21.2 million, or $0.36 per share compared to $38.0 million or $0.63 per share in the comparable prior year period. Excluding fiscal 2016 restructuring costs, third quarter adjusted EPS was $0.40 compared to $0.63 in the comparable prior year period. On average, ten analysts polled by Thomson Reuters expected the company to report profit per share of $0.37 for the quarter.

Third-quarter consolidated sales were $305 million, 5% lower than the $320 million in the comparable prior year quarter. Core sales declined 6% while acquisitions added 2% and foreign currency exchange rate changes reduced sales 1%. Analysts expected revenue of $294.23 million, for the quarter.