Enerpac Tool Group Misses Q3 EPS by 12c
Investing.com
Published Jun 28, 2022 04:33AM ET
Updated Jun 28, 2022 09:05AM ET
Enerpac Tool Group (NYSE:EPAC) reported Q3 EPS of $0.16, $0.12 worse than the analyst estimate of $0.28. Revenue for the quarter came in at $152 million versus the consensus estimate of $154.1 million.
Outlook:
Mr. Sternlieb continued, “As we move into the last quarter of fiscal 2022, we believe we are well positioned within our markets to further capitalize on improving demand. We are also keenly focused on executing the initiatives in our ASCEND transformation program to unlock significant opportunities for value creation across the organization, which we expect will generate incremental adjusted EBITDA of $40 to $50 million and will cost $60 to $65 million*** over the life of the program.
“Should we begin to see markets soften, we expect our transformation efforts, which are already underway, will position us well. We continue to proactively manage inflationary pressures and supply chain issues that impact our business and expect these challenges to persist for the foreseeable future. Due to the ongoing impact of the stronger US dollar, we have refined our full year net sales guidance range to $560 to $570 million from $560 to $580 million. In addition, we expect incremental adjusted EBITDA margins**** of 35% to 45% excluding the impact of foreign currency and the incremental receivable reserve in the third quarter related to a MENAC agent.”
Mr. Sternlieb concluded, “We are continuing the important work of accelerating growth, improving operational excellence, and creating a more efficient and agile organization, and we remain confident in our abilities to be successful as we drive toward Enerpac Tool Group’s next phase of growth and profitability.”
***Approximately $6 to $10 million is expected to be attributed to restructuring cost
****Incremental (or decremental) adjusted EBITDA margin is equivalent to the change in adjusted EBITDA divided by the change in Net Sales for the comparable periods.
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Written By: Investing.com
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