About Altra Industrial (AIMC) Beats On Q2 Earnings And Raises View

Altra Industrial Motion Corp is reported impressive results for the second quarter of 2020, with earnings surpassing estimates by 76.47%. it has also, sales beat estimates by 6.71%.
Better-than-expected results and upwardly revised projections seem to have lifted market sentiments for the stock. The NASDAQ: AIMC at https://www.webull.com/quote/nasdaq-aimc company is gained 1.3% on Friday, ending the trading session at $34.55. The machinery company’s non-GAAP earnings in the reported quarter were 60 cents per share, surpassing the Zacks Consensus Estimate of 34 cents. It is benefited from healthy demand in wind energy and Class 8 truck markets in China in the second quarter. It is cost-reduction measures and healthy cash-flow generation in the quarter was encouraging, especially amid the pandemic scare.

Revenue Details

Altra Industrial’s revenues were $400.8 million, reflecting a decline of 14.1% from the year-ago number.  It has also organic sales declined 12.5% year over year due to weakness in several end markets. It is including aerospace & defense, transportation, distribution, metals, mining, turf & garden, medical equipment, and oil & gas. It has business in renewable energy, factory automation & specialty machinery, and agriculture markets improved in the quarter.

Margin Profile

Altra Industrial’s cost of sales is decreased 14.1% year over year to $257.4 million. Notably, the cost of sales represented 64.2% of net sales. Non-GAAP gross profit was $143.4 million, down 14.1% year over year. The gross margin remained stable year over year at 35.8%.
Non-GAAP selling, general and administrative expenses decreased 21% year over year to $58 million and represented 14.5% of net sales.

Balance Sheet & Cash Flow

Exiting the second quarter, Altra Industrial’s cash and cash equivalents were $220.1 million, decreasing 32.7% from $326.9 million recorded in the last reported quarter. Long-term debt was $1,535.6 million, reflecting a 7.4% decrease from $1,658.5 million in the last reported quarter.
The NASDAQ: AIMC company is repaid $30 million of borrowings under its term-loan facility and $100 million under its revolving credit facility. Additional borrowing under its revolving facility totaled $100 million.

Dividends

A couple of days before the earnings release, the company announced that its board of directors approved the payment of a quarterly dividend of 4 cents per share. The payment will be made on Oct 2 to shareholders of record as of Sep 18, 2020.

Outlook

Altra Industrial is providing services to customers, solid liquidity position, debt reduction, and a healthy supply chain are its priorities at present. It is expecting growth opportunities to be healthy in robotics, factory automation, food processing, and medical equipment markets post-pandemic. You can do stock trading from an investment broker. Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.

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