Hot stock to watch: Actuant Corporation (NYSE: EPAC)

Free $100 Forex No-Deposit Bonus

Actuant Corporation (NYSE: EPAC) stock rose 0.53% on December 19th, 2019 (Source: Google finance) after the company posted better than expected results for the first quarter of FY 20. The company had reduced debt in the first quarter by $174 million by paying off the term loan with proceeds from the EC&S divestiture. The company had also repurchased approximately 840,000 shares of common stock for roughly $18 million. Further, the company in the quarter had completed the sale of the Engineered Components & Systems (“EC&S”) segment, which is reflected as discontinued operations, to One Rock Capital Partners.

EPAC in the first quarter of FY 20 has reported the adjusted earnings per share of 12 cents, beating the analysts’ estimates for the adjusted earnings per share of 9 cents. The company had reported the adjusted revenue of $147 million in the first quarter of FY 20, beating the analysts’ estimates for revenue of $137.82 billion. Core sales were flat for the first quarter, both tools and service sales fell by 1%, respectively.

For the second quarter of 2020, Actuant Corporation expects EPS to be in the range of $0.08-$0.12, versus the consensus of $0.15. Actuant Corporation expects Q2 2020 the revenue to be in the range of $133-140 million, versus the consensus of $135.97 million.

For fiscal 2020, Actuant Corporation expects EPS to be in the range of $0.68-$0.81, versus the consensus of $0.75. Actuant Corporation expects FY2020 revenue to be in the range of $575-600 million, versus the consensus of $584.96 million.

Meanwhile, in 2019 the company had identified $12 million to $15 million of annualized savings and the company anticipates to have taken actions by the end of the year to deliver the high-end of the projected savings. Further, the company intends to complete the Cortland plant consolidation in the back half of this fiscal year, which will lead to $5 million in savings. That includes the one-time charge of $2 million in this year to execute the plan or 100 basis points of year-over-year margin improvement. As a result, the company is expected to end the year positioned to deliver 20% annualized EBITDA margins in fiscal 2021. The company is also targeting an additional 100 basis points of improvement from the execution of an Enerpac plant optimization project, that is expected to commence in the back half of fiscal 2021.

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.