Benzinga | Jul 23, 2021 09:47AM EDT

Altra Industrial Motion Beats Q2 Estimates, Raises FY21 Outlook

* Altra Industrial Motion Corp (NASDAQ:AIMC) reported second-quarter net sales growth of 21.9% year-over-year to $488.6 million (+17.2% on an organic basis), beating consensus of $467.96 million.

* Sales by segments: Power Transmission Technologies $237.6 million (+21% Y/Y), and Automation & Specialty $252 million (+22.5% Y/Y).

* Adjusted EPS improved 48.3% Y/Y to $0.89, beating the consensus of $0.81.

* Adjusted operating margin contracted 50 bps to 17.3%.

* Adjusted EBITDA increased 15% Y/Y to $102.6 million, and margin declined by 120 bps to 21%.

* Outlook: The company expects FY21 sales of $1.89 billion to $1.92 billion, higher than the consensus of $1.86 billion, up from prior guidance of $1.82 billion to $1.85 billion.

* It expects GAAP diluted EPS of $2.28 to $2.41, raised from $2.08 to $2.21. Non-GAAP diluted EPS of $3.30 to $3.46 vs. the consensus estimate of $3.34, compared to prior guidance of $3.09 to $3.24.

* Adjusted EBITDA is expected to clock $395 million to $405 million, vs. previous guidance of $380 million to $390 million. Non-GAAP free cash flow is expected to hit $210 million to $235 million vs. prior guidance of $200 million to $225.0 million.

* Price action: AIMC shares are trading higher by 1.46% at $63.72 on the last check Friday.