Actuant To Report 4Q Earnings On 9/29

Citigroup writes "Actuant ATU pre-announced FY10 results saying that it expects to report “slightly” above the high-end of its $0.95-$1.00 forecast range, before accounting for the discontinued European Electrical business and the $35-$40 non-cash impairment charge. We expect the pace of the recovery in Actuant's early-cycle vehicle and North American DIY electrical markets to remain strong. The higher margin legacy high-force hydraulic business, Enerpac, could also see a lift as the recovery in the industrial economy gains traction. The Energy (20% of sales) platform remains the largest wildcard, in our view, and we expect the segment's organic revenue decline to moderate slightly from the 11% decline reported last quarter. We would not be surprised to see management tweak its FY11 EPS forecast higher if Energy markets show signs of stabilizing. The current FY11 guidance is $1.20-$1.35; our estimate is $1.30 and the consensus is $1.32." Citigroup maintains its Hold rating and $24 price target. Actuant closed yesterday at $22.29.