Enerpac Tool Group shares tumble 9% on Q4 earnings miss

MILWAUKEE - Enerpac Tool Group Corp. (NYSE:EPAC ) shares fell 9% in after-hours trading on Tuesday after the industrial tools maker reported fourth quarter earnings that missed analyst estimates.

The company posted adjusted earnings per share of $0.50 for the quarter ended August 31, falling short of the $0.53 expected by analysts. Revenue came in at $159 million, slightly above the consensus estimate of $157 million.

Net sales for the quarter declined 1.2% YoY to $158.7 million, with organic sales growth of 0.9%. The Industrial Tools & Services segment saw organic sales increase 0.8%, while product sales declined 0.8% and service revenues rose 9.7%.

"In what remains a challenging macro-environment for the general industrial marketplace, Enerpac continued to achieve organic growth in fiscal 2024," said Paul Sternlieb, Enerpac Tool Group's President & CEO.

For fiscal 2025, Enerpac expects revenue between $610 million to $625 million, representing organic growth of 0% to 2%. The company forecasts adjusted EBITDA of $150 million to $160 million.

"We are taking into account an expectation of a continued decline in the general industrial market. However, we believe Enerpac will continue to generate growth in fiscal 2025, representing our ability to outperform the industry and gain share driven by our targeted growth strategy," Sternlieb added.

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Source: Investing.com