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Manitowoc's (MTW) Earnings Beat Estimates in Q3, Sales Miss
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The Manitowoc Company, Inc. (MTW - Free Report) reported adjusted earnings per share (EPS) of 10 cents in third-quarter 2022, beating the Zacks Consensus Estimate of 8 cents per share. The bottom line improved 67% year over year.
Including one-time items, the company reported EPS of 7 cents in the quarter compared with the prior-year quarter’s loss of 1 cent per share.
Manitowoc’s revenues were up 12% year over year to $455 million in the quarter under review. The top line missed the Zacks Consensus Estimate of $496 million. Unfavorable changes in foreign currency translation rates had an impact of $31.6 million on sales.
Orders in the reported quarter declined 12.7% year over year to $472 million. The backlog at the end of the quarter was $943 million, up 6% from the last quarter.
The Manitowoc Company, Inc. Price, Consensus and EPS Surprise
The cost of sales moved up 13% year over year to $380 million in the reported quarter. Gross profit was up 8% year over year to $74 million. The gross margin was 16.3% in the reported quarter compared with 17.1% in the prior-year quarter.
Engineering, selling and administrative expenses increased 10% year over year to $66 million. Adjusted operating income was $8.7 million in the quarter, down from $9.7 million in the prior-year quarter. Adjusted EBITDA in the reported quarter was $24 million compared with $20 million in the prior-year quarter. Adjusted EBITDA margin contracted to 5.3% from the year-ago quarter’s 4.9%.
Financial Update
Manitowoc reported cash and cash equivalents of $43 million at the end of the third quarter of 2022, down from $75 million at 2021-end. Long-term debt was $404 million at the end of the quarter under review, up from $400 million at 2021-end. The company used $6.2 million of cash in operating activities in the third quarter of 2022 compared with $18.4 million in the last-year quarter.
Outlook
Citing persistent supply chain disruptions and continued inflationary pressure, Manitowoc expects EBITDA to come in at the lower end of the previously guided range of $130-$160 million. MTW had earlier provided revenue guidance in the range of $2.0 billion to $2.2 billion and adjusted EPS between 65 cents and $1.35.
Price Performance
Image Source: Zacks Investment Research
In the past year, Manitowoc’s shares have fallen 56.7% compared with the industry’s growth of 6.4%.
Zacks Rank and Stocks to Consider
Manitowoc currently carries a Zacks Rank #3 (Hold).
Tenaris delivered a trailing four-quarter earnings surprise of 34%, on average. The Zacks Consensus Estimate for the company for 2022 indicates year-over-year growth of around 120%. The estimate has moved up 3% in the past 60 days. The TS stock has risen 32% in the past year.
Enerpac Tool delivered a four-quarter earnings surprise of 3.4%, on average. EPAC’s earnings estimates have increased 9% for fiscal 2023 (ending August 2023) in the past 60 days. The estimate indicates year-over-year growth of 44.6%. EPAC’s shares have gained 14% in the past year.
Reliance Steel & Aluminum’s earnings surprise in the last four quarters was 13.4%, on average. It has an expected earnings growth rate of 27.9% for fiscal 2022. The earnings estimates have moved up 0.1% over the past 60 days. The RS stock has gained 23% in the past year.
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Manitowoc's (MTW) Earnings Beat Estimates in Q3, Sales Miss
The Manitowoc Company, Inc. (MTW - Free Report) reported adjusted earnings per share (EPS) of 10 cents in third-quarter 2022, beating the Zacks Consensus Estimate of 8 cents per share. The bottom line improved 67% year over year.
Including one-time items, the company reported EPS of 7 cents in the quarter compared with the prior-year quarter’s loss of 1 cent per share.
Manitowoc’s revenues were up 12% year over year to $455 million in the quarter under review. The top line missed the Zacks Consensus Estimate of $496 million. Unfavorable changes in foreign currency translation rates had an impact of $31.6 million on sales.
Orders in the reported quarter declined 12.7% year over year to $472 million. The backlog at the end of the quarter was $943 million, up 6% from the last quarter.
The Manitowoc Company, Inc. Price, Consensus and EPS Surprise
The Manitowoc Company, Inc. price-consensus-eps-surprise-chart | The Manitowoc Company, Inc. Quote
Operational Update
The cost of sales moved up 13% year over year to $380 million in the reported quarter. Gross profit was up 8% year over year to $74 million. The gross margin was 16.3% in the reported quarter compared with 17.1% in the prior-year quarter.
Engineering, selling and administrative expenses increased 10% year over year to $66 million. Adjusted operating income was $8.7 million in the quarter, down from $9.7 million in the prior-year quarter. Adjusted EBITDA in the reported quarter was $24 million compared with $20 million in the prior-year quarter. Adjusted EBITDA margin contracted to 5.3% from the year-ago quarter’s 4.9%.
Financial Update
Manitowoc reported cash and cash equivalents of $43 million at the end of the third quarter of 2022, down from $75 million at 2021-end. Long-term debt was $404 million at the end of the quarter under review, up from $400 million at 2021-end. The company used $6.2 million of cash in operating activities in the third quarter of 2022 compared with $18.4 million in the last-year quarter.
Outlook
Citing persistent supply chain disruptions and continued inflationary pressure, Manitowoc expects EBITDA to come in at the lower end of the previously guided range of $130-$160 million. MTW had earlier provided revenue guidance in the range of $2.0 billion to $2.2 billion and adjusted EPS between 65 cents and $1.35.
Price Performance
Image Source: Zacks Investment Research
In the past year, Manitowoc’s shares have fallen 56.7% compared with the industry’s growth of 6.4%.
Zacks Rank and Stocks to Consider
Manitowoc currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are Tenaris (TS - Free Report) , Enerpac Tool Group Corp. (EPAC - Free Report) and Reliance Steel & Aluminum Co. (RS - Free Report) . While TS and EPAC sport a Zacks Rank #1 (Strong Buy), RS carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
Tenaris delivered a trailing four-quarter earnings surprise of 34%, on average. The Zacks Consensus Estimate for the company for 2022 indicates year-over-year growth of around 120%. The estimate has moved up 3% in the past 60 days. The TS stock has risen 32% in the past year.
Enerpac Tool delivered a four-quarter earnings surprise of 3.4%, on average. EPAC’s earnings estimates have increased 9% for fiscal 2023 (ending August 2023) in the past 60 days. The estimate indicates year-over-year growth of 44.6%. EPAC’s shares have gained 14% in the past year.
Reliance Steel & Aluminum’s earnings surprise in the last four quarters was 13.4%, on average. It has an expected earnings growth rate of 27.9% for fiscal 2022. The earnings estimates have moved up 0.1% over the past 60 days. The RS stock has gained 23% in the past year.