Story updated at 9:55 a.m. to reflect market activity.
Shares of Actuant fell 0.6% to $32.65 in morning trading.
The firm also lowered its earnings estimates for Actuant. The price target and EPScuts are due to a lack of improvement in key end-markets such as Europe.
Separately, TheStreet Ratings team rates ACTUANT CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ACTUANT CORP (ATU) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 17.2%. Since the same quarter one year prior, revenues rose by 10.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The current debt-to-equity ratio, 0.44, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.01, which illustrates the ability to avoid short-term cash problems.
- ACTUANT CORP has improved earnings per share by 7.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, ACTUANT CORP increased its bottom line by earning $1.98 versus $1.67 in the prior year. This year, the market expects an improvement in earnings ($2.03 versus $1.98).
- Net operating cash flow has significantly increased by 168.39% to $32.95 million when compared to the same quarter last year. In addition, ACTUANT CORP has also vastly surpassed the industry average cash flow growth rate of 27.04%.
- 41.75% is the gross profit margin for ACTUANT CORP which we consider to be strong. Regardless of ATU's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ATU's net profit margin of 10.61% compares favorably to the industry average.
- You can view the full analysis from the report here: ATU Ratings Report