Enerpac Tool Q2 sales beat estimates, driven by strong performance in IT&S segment
Overview
U.S. industrial tools maker's fiscal Q2 sales rose 6%, beating analyst expectations
Adjusted EPS for fiscal Q2 met analyst expectations
Enerpac Tool Group Corp repurchased $51 mln in shares during the quarter
Outlook
Enerpac Tool sees full-year net sales of $635 mln to $650 mln
Company expects fiscal 2026 adjusted EPS of $1.85 to $1.92
Enerpac Tool maintains free cash flow guidance at $100 mln to $110 mln
Result Drivers
PRODUCT SALES GROWTH - Organic product sales in the IT&S segment rose 6%, the highest in 10 quarters, according to CEO Paul Sternlieb
SERVICE WEAKNESS - Within IT&S, service revenue declined 17% organically, mainly due to market softness in the EMEA region
GROSS MARGIN PRESSURE - Gross profit margin declined 410 basis points year-over-year to 46.4% due to continued pressure on the service business
Company press release: ID:nGNX88dRsD
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Beat | $154.8 mln | $147.80 mln (3 Analysts) |
Q2 Adjusted EPS | Meet | $0.39 | $0.39 (3 Analysts) |
Q2 EPS |
| $0.31 |
|
Q2 Adjusted Net Income | Miss | $20.3 mln | $20.85 mln (2 Analysts) |
Q2 Net Income |
| $16.3 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy"
Wall Street's median 12-month price target for Enerpac Tool Group Corp is $51.00, about 36.1% above its March 25 closing price of $37.48
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 19 three months ago
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