We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Crane's (CR) Earnings and Revenues Surpass Estimates in Q3
Read MoreHide Full Article
Crane Co. (CR - Free Report) kept its earnings beat streak alive in the third quarter of 2022, delivering better-than-expected results for the seventh consecutive quarter. The quarterly earnings surpassed the Zacks Consensus Estimate by 0.5%. Sales surprise was 0.6%.
Adjusted earnings came in at $1.86 per share, surpassing the Zacks Consensus Estimate of $1.85. However, the bottom line decreased 1.6% from the year-ago quarter’s figure of $1.89.
Revenue Details
Crane’s net sales were $815 million in the quarter, down 8.8% year over year.
However, the quarterly net sales surpassed the Zacks Consensus Estimate of $810 million.
Crane reports net sales under four segments: Process Flow Technologies, Payment & Merchandising Technologies, Aerospace & Electronics, and Engineered Materials (presented as continuing operations as of Jun 30, 2022).
The segmental information is briefly discussed below:
Revenues from Process Flow Technologies (representing 30.7% of the quarter’s total revenues) were $250 million, declining 16% from the year-ago quarter. Movement in foreign currencies had an adverse impact of 5% on sales. The divestiture of Crane Supply impacted segmental revenues by 20%. The segment’s order backlog was $354 million in the reported quarter, reflecting sequential growth of 1.4%.
Revenues from Payment & Merchandising Technologies (representing 41.1% of the quarter’s total revenues) totaled $335 million, decreasing 8% year over year on a 3% decline in core sales. Foreign currency movements had an adverse impact of 6% on segmental revenues. The order backlog at the end of the reported quarter was $500 million, up 3.7% sequentially.
Revenues from the Aerospace & Electronics segment (representing 20.5% of the quarter’s total revenues) were $167 million, down 1% year over year. The order backlog at the end of the quarter was $592 million, up 10.9% sequentially.
Revenues from the Engineered Materials segment (representing 7.7% of the quarter’s total revenues) were $63 million, increasing 4% year over year.
In the third quarter, Crane’s sales cost of $485.6 million reflected a 12.7% decline from the year-ago quarter. The metric represented 59.6% of net sales compared with 62.2% a year ago. Selling, general and administrative expenses increased 2.9% to $198.3 million. The same represented 24.3% of net sales compared with 21.6% in the year-ago quarter.
Adjusted operating profit in the third quarter decreased 1.8% year over year to $143.5 million, while the margin increased 120 basis points to 17.6%. Interest expenses in the reported quarter were $13.5 million, increasing 22.7% from the year-ago figure.
Balance Sheet and Cash Flow
Exiting the third quarter, Crane had cash and cash equivalents of $438.6 million, down 8.4% from $478.6 million at the end of the fourth quarter of 2021. The long-term debt balance was $843.2 million compared with $842.7 million at the end of the fourth quarter of 2021.
In the first nine months of 2022, Crane made no repayment of commercial paper (maturity >90 days).
In the same period, CR used net cash of $378 million for operating activities against $327 million generated in the year-ago period. Capital expenditure was $36.8 million in the period, higher than the $26.7 million spent in the previous year. Free cash flow was $414.8 million in the first nine months of 2022 against the $300.3 million free cash flow generated in the year-ago period.
Shareholder-Friendly Policy
In third-quarter 2022, Crane used $26.4 million for paying out dividends, up 4.3% from the year-ago quarter’s level. The company did not make any share reacquisition in the quarter.
2022 Outlook
The company adjusted the midpoint of full-year 2022 GAAP EPS guidance primarily to reflect the third quarter after-tax charges of $2.83 per share related to the August asbestos entity sale transaction. Crane adjusted its full-year GAAP earnings from continued operations to $6.58-$6.72 from the earlier issued projection of $9.80-$10.20.
Management reaffirmed the midpoint of adjusted earnings per share for 2022. The company anticipates adjusted earnings per share of $7.58-$7.72 for the year compared with the $7.45-$7.85 projected earlier. Adjusted free cash flow is projected to be $350-$390 million for the current year.
Zacks Rank & Other Stocks to Consider
CR currently carries a Zacks Rank #4 (Sell). Some better-ranked companies from the Industrial Products sector are discussed below:
EPAC’s earnings estimates have increased 9.1% for fiscal 2023 (ending August 2023) in the past 60 days. The company’s shares have gained 26.3% in the past three months.
iRobot Corporation (IRBT - Free Report) presently has a Zacks Rank of 2 (Buy). IRBT’s earnings surprise in the last four quarters was 59.1%, on average.
In the past 60 days, iRobot’s earnings estimates have increased 0.1% for 2022. The stock has rallied 36.7% in the past three months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Crane's (CR) Earnings and Revenues Surpass Estimates in Q3
Crane Co. (CR - Free Report) kept its earnings beat streak alive in the third quarter of 2022, delivering better-than-expected results for the seventh consecutive quarter. The quarterly earnings surpassed the Zacks Consensus Estimate by 0.5%. Sales surprise was 0.6%.
Adjusted earnings came in at $1.86 per share, surpassing the Zacks Consensus Estimate of $1.85. However, the bottom line decreased 1.6% from the year-ago quarter’s figure of $1.89.
Revenue Details
Crane’s net sales were $815 million in the quarter, down 8.8% year over year.
However, the quarterly net sales surpassed the Zacks Consensus Estimate of $810 million.
Crane reports net sales under four segments: Process Flow Technologies, Payment & Merchandising Technologies, Aerospace & Electronics, and Engineered Materials (presented as continuing operations as of Jun 30, 2022).
The segmental information is briefly discussed below:
Revenues from Process Flow Technologies (representing 30.7% of the quarter’s total revenues) were $250 million, declining 16% from the year-ago quarter. Movement in foreign currencies had an adverse impact of 5% on sales. The divestiture of Crane Supply impacted segmental revenues by 20%. The segment’s order backlog was $354 million in the reported quarter, reflecting sequential growth of 1.4%.
Revenues from Payment & Merchandising Technologies (representing 41.1% of the quarter’s total revenues) totaled $335 million, decreasing 8% year over year on a 3% decline in core sales. Foreign currency movements had an adverse impact of 6% on segmental revenues. The order backlog at the end of the reported quarter was $500 million, up 3.7% sequentially.
Revenues from the Aerospace & Electronics segment (representing 20.5% of the quarter’s total revenues) were $167 million, down 1% year over year. The order backlog at the end of the quarter was $592 million, up 10.9% sequentially.
Revenues from the Engineered Materials segment (representing 7.7% of the quarter’s total revenues) were $63 million, increasing 4% year over year.
Crane Holdings, Co. Price and Consensus
Crane Holdings, Co. price-consensus-chart | Crane Holdings, Co. Quote
Margin Profile
In the third quarter, Crane’s sales cost of $485.6 million reflected a 12.7% decline from the year-ago quarter. The metric represented 59.6% of net sales compared with 62.2% a year ago. Selling, general and administrative expenses increased 2.9% to $198.3 million. The same represented 24.3% of net sales compared with 21.6% in the year-ago quarter.
Adjusted operating profit in the third quarter decreased 1.8% year over year to $143.5 million, while the margin increased 120 basis points to 17.6%. Interest expenses in the reported quarter were $13.5 million, increasing 22.7% from the year-ago figure.
Balance Sheet and Cash Flow
Exiting the third quarter, Crane had cash and cash equivalents of $438.6 million, down 8.4% from $478.6 million at the end of the fourth quarter of 2021. The long-term debt balance was $843.2 million compared with $842.7 million at the end of the fourth quarter of 2021.
In the first nine months of 2022, Crane made no repayment of commercial paper (maturity >90 days).
In the same period, CR used net cash of $378 million for operating activities against $327 million generated in the year-ago period. Capital expenditure was $36.8 million in the period, higher than the $26.7 million spent in the previous year. Free cash flow was $414.8 million in the first nine months of 2022 against the $300.3 million free cash flow generated in the year-ago period.
Shareholder-Friendly Policy
In third-quarter 2022, Crane used $26.4 million for paying out dividends, up 4.3% from the year-ago quarter’s level. The company did not make any share reacquisition in the quarter.
2022 Outlook
The company adjusted the midpoint of full-year 2022 GAAP EPS guidance primarily to reflect the third quarter after-tax charges of $2.83 per share related to the August asbestos entity sale transaction. Crane adjusted its full-year GAAP earnings from continued operations to $6.58-$6.72 from the earlier issued projection of $9.80-$10.20.
Management reaffirmed the midpoint of adjusted earnings per share for 2022. The company anticipates adjusted earnings per share of $7.58-$7.72 for the year compared with the $7.45-$7.85 projected earlier. Adjusted free cash flow is projected to be $350-$390 million for the current year.
Zacks Rank & Other Stocks to Consider
CR currently carries a Zacks Rank #4 (Sell). Some better-ranked companies from the Industrial Products sector are discussed below:
Enerpac Tool Group Corp. (EPAC - Free Report) delivered a four-quarter earnings surprise of 3.4%, on average. EPAC presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks.
EPAC’s earnings estimates have increased 9.1% for fiscal 2023 (ending August 2023) in the past 60 days. The company’s shares have gained 26.3% in the past three months.
iRobot Corporation (IRBT - Free Report) presently has a Zacks Rank of 2 (Buy). IRBT’s earnings surprise in the last four quarters was 59.1%, on average.
In the past 60 days, iRobot’s earnings estimates have increased 0.1% for 2022. The stock has rallied 36.7% in the past three months.