Shares of Actuant (ATU) fell sharply Thursday after the company's fiscal fourth-quarter earnings beat Wall Street expectations but revenue fell short.
The Milwaukee-based industrial products manufacturer reported revenue of $158 million with adjusted earnings of 21 cents a share. Analysts were expecting the company to report revenue of $168 million and earnings of 18 cents.
"Consistent with most global industrial economic indicators, we saw a softening top line in the fourth quarter which caused our results to be below expectations. We believe the strategic growth and cost actions we are taking position us well for the future despite moderating market conditions," CEO Randy Baker said.
The company reported a 4% decrease in core sales, which it attributed to the intentional exit of "certain unprofitable portions" of the company's business as well as macro headwinds coming from Europe.
Earlier this week, Actuant announced it would be changing its name to Enerpac Tool, with the new name signifying "the company's continued progression toward becoming a premier pure play industrial tools and services company."
The move was prompted by the company's divestiture of the principal businesses of its engineer components and systems segment.
The stock will begin trading under new symbol "EPAC" on Oct. 7. The company's legal name change is subject to shareholder approval at its next annual meeting in January, Actuant said.
Shares fell 15.6% to $20.88 on Thursday.