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.
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.
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.
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.
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.