The 10-second takeaway
For the quarter ended Nov. 30 (Q1), Actuant beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly, and earnings per share grew significantly.
Margins improved across the board.
Actuant booked revenue of $393 million. The 11 analysts polled by S&P Capital IQ expected revenue of $376 million. Sales were 23% higher than the prior-year quarter's $318 million
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.50. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.43 per share. GAAP EPS of $0.50 for Q1 were 42% higher than the prior-year quarter's $0.35 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 38.9%, 60 basis points better than the prior-year quarter. Operating margin was 14.6%, 140 basis points better than the prior-year quarter. Net margin was 9.5%, 140 basis points better than the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods.
What does the future hold?
Next quarter's average estimate for revenue is $369 million. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $1.6 billion. The average EPS estimate is $1.95.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 503 members out of 512 rating the stock outperform, and nine members rating it underperform. Among 178 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 177 give Actuant a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Actuant is outperform, with an average price target of $27.83.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Actuant. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.