Actuant (ATU) Stock Pops on Q4 Earnings - TheStreet

NEW YORK (TheStreet) -- Shares of Actuant (ATU) were climbing on heavy trading volume late Wednesday afternoon after the company reported in-line earnings for the 2016 fiscal fourth quarter.

Before today's opening bell, the Menomonee Falls, WI-based industrial products company posted adjusted earnings of 30 cents per share, matching Wall Street's estimates.

But revenue for the period was $275.8 million, below analysts' expectations of $277.6 million.

"Fourth quarter sales and adjusted operating results were in line with our expectations. End user demand across our diverse industrial markets appears to be stable at near trough levels," CEO Randy Baker said in a statement.

For the fiscal first quarter, Actuant forecasts earnings per share between 14 cents and 19 cents on revenue of $260 million to $270 million. Analysts are looking for earnings of 29 cents per share on revenue of $294 million for the current period.

Full-year earnings per share are projected to be between $1 and $1.20 on revenue of $1.08 billion to $1.13 billion, also lower than analysts' expectations.

Wall Street is estimating earnings of $1.23 per share on revenue of $1.16 billion for fiscal 2017.

"Looking into fiscal 2017, we currently do not see a catalyst to meaningfully improve overall end market conditions. The first half in particular is expected to continue recent core sales trends, OEM destocking, and difficult comparisons, notably in large project activity in energy," Baker said.

He added that the company expect these factors to give way to sequential year-over-year improvement in the back half of the fiscal year.

More than 1.3 million of the company's shares changed hands so far today, above its average volume of 506,244 shares per day.

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.

The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its solid stock price performance, expanding profit margins and largely solid financial position with reasonable debt levels by most measures.

But the team also finds weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: ATU

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