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The Manitowoc Company, Inc. (MTW) Down 2.6% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for The Manitowoc Company, Inc. (MTW - Free Report) . Shares have lost about 2.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is The Manitowoc Company, Inc. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Manitowoc Earnings Surpass Estimates in Q4, Up Y/Y
Manitowoc reported adjusted earnings per share (EPS) of 27 cents in fourth-quarter 2021 against the Zacks Consensus Estimate of a loss of 1 cent per share. The bottom line increased 42% from the year-ago quarter’s earnings of 19 cents per share. Given improved demand, the company witnessed strong order rates and the highest backlog levels in more than 10 years during the quarter. Cost inflation, parts shortages and logistics disruptions continue to impact results.
Including one-time items, the company reported a loss per share of 10 cents in the quarter against the prior-year quarter’s earnings of 5 cents per share.
Manitowoc’s revenues rose 15.7% year over year to $498 million during the December-end quarter. However, the top line lagged the Zacks Consensus Estimate of $514 million. Revenues were affected by changes in foreign currency translation rates.
Orders in the reported quarter increased 21% year over year to $615 million. Backlog at the end of 2021 was $1,010.9 million, up 86.1% from the 2020-end’s levels.
Operational Update
Cost of sales increased 18.7% year over year to $418 million in the reported quarter. Gross profit inched up 1.8% year over year to $79 million. The gross margin was 16% in the reported quarter compared with 18% in the prior-year quarter.
Engineering, selling and administrative expenses increased 44% year over year to $78 million. Adjusted operating income was $17.5 million in the quarter, down 28% from $24.2 million in the prior-year quarter’s levels. Adjusted EBITDA in the reported quarter was $34.2 million, flat year over year. Adjusted EBITDA margin contracted to 6.9% from the year-ago quarter’s 7.9%.
Financial Updates
Manitowoc reported cash and cash equivalents of $75.4 million at the end of 2021, down from $128.7 million at 2020-end. Long-term debt was $399.9 million at the end of 2021, up from $300 million at 2020-end. The company generated $76 million of cash in operating activities in 2021 compared with cash utilization of $35 million in 2020.
2021 Performance
Manitowoc reported adjusted EPS of 86 cents in 2021 against the loss per share of 35 cents reported in the prior year. Earnings beat the Zacks Consensus Estimate of 55 cents. Including one-time items, the bottom line came in at 31 cents per share against a loss per share of 55 cents reported in 2020.
Sales were up 19% year over year to $1.72 billion. The top line missed the Zacks Consensus Estimate of $1.74 billion.
Outlook
Manitowoc is witnessing positive trends in crane demand in 2022. It expects cost inflation, part shortages and supply chain constraints to subside gradually through the year.
For the current year, Manitowoc expects revenues in the range of $2.0-$2.2 billion. Adjusted EBITDA is anticipated between $130 million and $160 million. Adjusted EPS is expected between 65 cents and $1.35.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
The consensus estimate has shifted 13.64% due to these changes.
VGM Scores
At this time, The Manitowoc Company, Inc. has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
The Manitowoc Company, Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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The Manitowoc Company, Inc. (MTW) Down 2.6% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for The Manitowoc Company, Inc. (MTW - Free Report) . Shares have lost about 2.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is The Manitowoc Company, Inc. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Manitowoc Earnings Surpass Estimates in Q4, Up Y/Y
Manitowoc reported adjusted earnings per share (EPS) of 27 cents in fourth-quarter 2021 against the Zacks Consensus Estimate of a loss of 1 cent per share. The bottom line increased 42% from the year-ago quarter’s earnings of 19 cents per share. Given improved demand, the company witnessed strong order rates and the highest backlog levels in more than 10 years during the quarter. Cost inflation, parts shortages and logistics disruptions continue to impact results.
Including one-time items, the company reported a loss per share of 10 cents in the quarter against the prior-year quarter’s earnings of 5 cents per share.
Manitowoc’s revenues rose 15.7% year over year to $498 million during the December-end quarter. However, the top line lagged the Zacks Consensus Estimate of $514 million. Revenues were affected by changes in foreign currency translation rates.
Orders in the reported quarter increased 21% year over year to $615 million. Backlog at the end of 2021 was $1,010.9 million, up 86.1% from the 2020-end’s levels.
Operational Update
Cost of sales increased 18.7% year over year to $418 million in the reported quarter. Gross profit inched up 1.8% year over year to $79 million. The gross margin was 16% in the reported quarter compared with 18% in the prior-year quarter.
Engineering, selling and administrative expenses increased 44% year over year to $78 million. Adjusted operating income was $17.5 million in the quarter, down 28% from $24.2 million in the prior-year quarter’s levels. Adjusted EBITDA in the reported quarter was $34.2 million, flat year over year. Adjusted EBITDA margin contracted to 6.9% from the year-ago quarter’s 7.9%.
Financial Updates
Manitowoc reported cash and cash equivalents of $75.4 million at the end of 2021, down from $128.7 million at 2020-end. Long-term debt was $399.9 million at the end of 2021, up from $300 million at 2020-end. The company generated $76 million of cash in operating activities in 2021 compared with cash utilization of $35 million in 2020.
2021 Performance
Manitowoc reported adjusted EPS of 86 cents in 2021 against the loss per share of 35 cents reported in the prior year. Earnings beat the Zacks Consensus Estimate of 55 cents. Including one-time items, the bottom line came in at 31 cents per share against a loss per share of 55 cents reported in 2020.
Sales were up 19% year over year to $1.72 billion. The top line missed the Zacks Consensus Estimate of $1.74 billion.
Outlook
Manitowoc is witnessing positive trends in crane demand in 2022. It expects cost inflation, part shortages and supply chain constraints to subside gradually through the year.
For the current year, Manitowoc expects revenues in the range of $2.0-$2.2 billion. Adjusted EBITDA is anticipated between $130 million and $160 million. Adjusted EPS is expected between 65 cents and $1.35.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
The consensus estimate has shifted 13.64% due to these changes.
VGM Scores
At this time, The Manitowoc Company, Inc. has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
The Manitowoc Company, Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.