The 10-second takeaway
For the quarter ended Feb. 29 (Q2), Actuant beat expectations on both revenue and earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.
Gross margin dropped, operating margin increased, and net margin expanded.
Actuant logged revenue of $378.0 million. The 10 analysts polled by S&P Capital IQ expected sales of $367.5 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $330.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.43. The 13 earnings estimates compiled by S&P Capital IQ anticipated $0.38 per share. GAAP EPS of $0.43 for Q2 were 291% higher than the prior-year quarter's $0.11 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 37.4%, 40 basis points worse than the prior-year quarter. Operating margin was 13.1%, 180 basis points better than the prior-year quarter. Net margin was 8.5%, 610 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $430.9 million. On the bottom line, the average EPS estimate is $0.59.
Next year's average estimate for revenue is $1.62 billion. The average EPS estimate is $2.08.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 500 members rating the stock outperform and nine members rating it underperform. Among 185 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 184 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 $29.00.
Over the decades, small-cap stocks like Actuant have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Actuant to My Watchlist.