Earnings Watch: Actuant Corporation (ATU)

Company Profile:

Actuant Corporation (ATU) is a global diversified company that designs, manufactures and distributes a range of industrial products and systems to various end markets. The Company is organized into three operating segments: Industrial, Energy and Engineered Solutions. The Industrial segment is involved in the design, manufacture and distribution of branded hydraulic and mechanical tools to the maintenance, industrial, infrastructure and production automation markets. The Energy segment provides joint integrity products and services, customized offshore vessel mooring solutions, as well as rope and cable solutions to the global oil & gas, power generation and other energy markets. The Engineered Solutions segment provides highly engineered position and motion control systems to original equipment manufacturers (OEM) in various on and off-highway vehicle markets, as well as, a variety of other products to the industrial and agricultural markets. The company was founded in 1910 and is headquartered in Menomonee Falls, Wisconsin.

Recent News:

Sell-side analysts are expecting Actuant Corporation to report quarterly earnings per share of $0.3 for the quarter ending 2015-08-31. This consensus figure is based on 4 firms providing estimates.

Actuant Corporation posted a surprise factor of 18.87% for the previous quarter where the analyst consensus EPS estimate turned out to be $0.1 away from the reported actual number of $0.63.

The Board declared an annual dividend of $0.04 per common share payable on October 15, 2015 to shareholders of record at the close of business on September 30, 2015.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

ATU’s strengths can be seen in its strong growth, better profitability, better solvency and strong efficiency. Its revenue has increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator and RSI is increasing to 50.96. The P/BV ratio indicates it is undervalued compared to the average P/BV ratio of the industry and the sector. We rate Actuant Corporation (ATU) a BUY.