Enerpac Tool Group Corp (NYSE:EPAC) stock rose 4.08% (As on June 22, 11:28:17 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY 23. Core sales improved 4% year over year, with product sales up 9% and service revenues down 13%, as the Company continued its implementation of 80/20 and a more selective process for quoting service projects (particularly in the Middle East region) that is focused on more differentiated solutions. The company estimates core sales growth was negatively impacted by approximately 200 basis points as a result of the more selective process for quoting in the Middle East in the third quarter. Net debt as of May 31, 2023 was approximately $93 million (total debt of $235 million less $142 million of cash), which increased approximately $8 million from February 28, 2023. Net Debt to Adjusted EBITDA from continuing operations was 1.0x as of May 31, 2023. Fiscal 2023 third quarter net earnings was $17.0 compared to net earnings of $4.1 million in the third quarter of fiscal 2022. The company has returned approximately $21 million to shareholders during the quarter through share repurchases under the March 2022 authorization

EPAC in the third quarter of FY 23 has reported the adjusted earnings per share of 39 cents, beating the analysts’ estimates for the adjusted earnings per share of 30 cents. The company had reported the adjusted revenue of $156.3 million in the third quarter of FY 23, beating the analysts’ estimates for revenue of $154.5 million.

Industrial Tools & Service (IT&S) third quarter fiscal 2023 net sales were $144.1 million, 3% higher than the prior fiscal year’s third quarter net sales. Core sales increased 4% year over year. Operating profit margin and adjusted operating profit margin increased year over year to 25.1% and 27.6%, respectively, primarily due to the impact of ASCEND initiatives, pricing actions, and savings from cost management and restructuring initiatives implemented in prior periods, despite increased material costs. Third quarter fiscal 2022 adjusted operating profit margin of 13.8% included an unfavorable impact of 770 basis points due to an additional receivable reserve in the MENAC region.

The company has updated the expectations for full-year net sales to the high end of the previously disclosed range at $590-600 million, and they are increasing the expected adjusted EBITDA range to $123 to $130 million