Enerpac Reports Earnings Miss, Future Growth Questions Arise
Enerpac (EPAC) reported earnings of $0.50 per share for the recent quarter, falling short of the Zacks Consensus Estimate of $0.53 per share. This marks an increase from earnings of $0.42 per share a year earlier. These results are adjusted for one-time items.
This quarterly performance reflects an earnings surprise of -5.66%. In the previous quarter, the company was expected to earn $0.47 per share and delivered exactly that, resulting in no surprise.
In the past four quarters, Enerpac has exceeded consensus EPS estimates just once.
Operating within the Zacks Manufacturing – Tools & Related Products sector, Enerpac reported revenues of $158.71 million for the quarter ending August 2024. This figure was slightly ahead of the Zacks Consensus Estimate by 1.29%, but down from $160.61 million a year ago. In the last year, the company has exceeded revenue forecasts twice.
The direction of the stock price in the near term will depend largely on management’s insights during the upcoming earnings call.
Since the start of 2024, Enerpac shares have risen approximately 41.2%, significantly outpacing the S&P 500’s gain of 22.9%.
What Lies Ahead for Enerpac?
Even though Enerpac has performed well relative to the market this year, investors are left wondering about the future of the stock.
No simple answers are available to this pressing question. However, the company’s earnings outlook can provide valuable insights. This outlook includes current consensus earnings projections for future quarters along with recent changes in those estimates.
Research indicates a strong relationship between short-term stock movements and revisions in earnings estimates. Investors can either track these revisions independently or utilize resources like the Zacks Rank, known for its effectiveness in evaluating earnings estimate changes.
Leading up to this earnings announcement, the trend in estimate revisions for Enerpac appears mixed. Although these trends could shift following the latest earnings report, the current status yields a Zacks Rank of #3 (Hold) for Enerpac stock, implying it should perform in line with the overall market. A full list of today’s Zacks #1 Rank (Strong Buy) stocks can be found here.
It will be noteworthy to observe how estimates for the coming quarters and the ongoing fiscal year evolve in the near future. For now, the consensus EPS estimate stands at $0.47 on $150 million in revenue for the next quarter, and $2.17 on revenues of $638.9 million for the entire fiscal year.
Investors should also consider the broader industry outlook, as it can significantly influence stock performance. The Manufacturing – Tools & Related Products sector currently ranks in the bottom 34% of over 250 Zacks industries. Historically, the top half of Zacks-ranked industries have outperformed the bottom 50% by a factor of more than 2 to 1.
In the same industry, Stanley Black & Decker (SWK) is set to release its results for the quarter ending September 2024 on October 29. Analysts forecast quarterly earnings of $1.03 per share, reflecting a year-over-year decrease of -1.9%. The EPS estimate for this quarter has been revised down 3.6% over the past month, while revenues are anticipated to be $3.78 billion, which is a 4.5% decline from the prior year’s results.
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Enerpac Tool Group Corp. (EPAC): Free Stock Analysis Report
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
