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Carpenter Technology (CRS) Earnings Beat Estimates in Q4
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Carpenter Technology Corporation (CRS - Free Report) reported adjusted earnings of 78 cents per share in fourth-quarter fiscal 2023, beating the Zacks Consensus Estimate of adjusted earnings of 67 cents per share. It had posted break-even adjusted earnings in the year-ago quarter.
Including one-time items, the company reported earnings per share of 78 cents compared with the year-ago quarter’s 5 cents.
Net sales increased 34.5% year over year to $758.1 million in the reported quarter. The figure topped the Zacks Consensus Estimate of $724 million. The upside was driven by ongoing solid demand in most of the company’s end-use markets.
CRS witnessed a year-over-year revenue increase of 64.8% in the Aerospace and Defense end-use market. Revenues in the Energy end-market were up 65.7%. Revenues in the Medical end-use markets rose 24%. Revenues in the Distribution markets decreased 10.7%, whereas the same for industrial and consumer end-use markets increased 17.2%. The transportation end-use market’s revenues rose 11%.
Operational Results
The cost of goods sold in fourth-quarter fiscal 2023 moved up 30% year over year to $639 million. The gross profit surged 65.3% year over year to $119 million. The adjusted operating income in the reported quarter was $62.9 million compared with the prior-year quarter’s operating profit of $14.9 million.
Carpenter Technology Corporation Price, Consensus and EPS Surprise
The Specialty Alloys Operations segment reported sales of $667 million compared with the prior-year quarter’s $485 million. We predicted the segment’s sales to be $523 million. The segment sold 61,528 pounds compared with the year-ago quarter’s 51,626 pounds. The reported figure surpassed our estimate of 54,035 pounds. CRS posted an operating profit of $80 million compared with the prior-year quarter’s $30 million. Our estimate for the segment’s operating profit was $69.8 million.
The Performance Engineered Products’ net sales increased 23.9% year over year to $119 million. The reported figure surpassed our estimate of $100 million. The segment sold 3,328 pounds compared with the year-ago quarter’s 2,808 pounds. It was higher than our projection of 2,900 pounds. The segment reported an operating profit of $5.9 million compared with the prior-year quarter’s $10.3 million. Our estimate for the segment’s operating profit was $10 million.
FY23 Performance
Carpenter Technology reported adjusted earnings of $1.14 per share in fiscal 2023, beating the Zacks Consensus Estimate of adjusted earnings of $1.04 per share. The company had reported an adjusted loss per share of $1.06 in fiscal 2022. Including one-time items, the company posted earnings per share of $1.14 against the year-ago quarter’s loss per share of $1.01.
Net sales increased 38.9% year over year to $2,550 million. The figure topped the Zacks Consensus Estimate of $2,516 million.
Financials
Carpenter Technology ended fiscal 2023 with cash and cash equivalents of $45 million compared with $154 million at the end of fiscal 2022. The long-term debt was $693 million at the end of the quarter compared with $692 as of the end of fiscal 2022. Cash flow from operating activities was $175 million in the quarter under review compared with $107 million in the prior-year quarter.
Price Performance
Shares of the company have gained 81.3% in the past year compared with the industry’s growth of 72%.
Some other top-ranked stocks from the basic materials space are Livent Corporation , Orla Mining Ltd. (ORLA - Free Report) and PPG Industries, Inc. (PPG - Free Report) . LTHM and ORLA sport a Zacks Rank #1 at present, and PPG has a Zacks Rank #2 (Buy).
Livent has an average trailing four-quarter earnings surprise of 22.1%. The Zacks Consensus Estimate for LTHM’s fiscal 2023 earnings is pegged at $2.11 per share. The consensus estimate for 2023 earnings has moved north by 3.4% in the past 60 days. Its shares have gained 111.9% in the last year.
Orla Mining has an average trailing four-quarter earnings surprise of 85.4%. The Zacks Consensus Estimate for ORLA’s 2023 earnings is pegged at 15 cents per share. The consensus estimate for 2023 earnings has moved 87.5% north over the past 60 days. ORLA’s shares gained 62.7% in the last year.
The Zacks Consensus Estimate for PPG Industries’ fiscal 2023 earnings per share is pegged at $7.47, indicating growth of 23.5% from the prior-year actuals. Earnings estimates have moved 3% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 7.3%. PPG’s shares have gained 11.2% in the past year.
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Carpenter Technology (CRS) Earnings Beat Estimates in Q4
Carpenter Technology Corporation (CRS - Free Report) reported adjusted earnings of 78 cents per share in fourth-quarter fiscal 2023, beating the Zacks Consensus Estimate of adjusted earnings of 67 cents per share. It had posted break-even adjusted earnings in the year-ago quarter.
Including one-time items, the company reported earnings per share of 78 cents compared with the year-ago quarter’s 5 cents.
Net sales increased 34.5% year over year to $758.1 million in the reported quarter. The figure topped the Zacks Consensus Estimate of $724 million. The upside was driven by ongoing solid demand in most of the company’s end-use markets.
CRS witnessed a year-over-year revenue increase of 64.8% in the Aerospace and Defense end-use market. Revenues in the Energy end-market were up 65.7%. Revenues in the Medical end-use markets rose 24%. Revenues in the Distribution markets decreased 10.7%, whereas the same for industrial and consumer end-use markets increased 17.2%. The transportation end-use market’s revenues rose 11%.
Operational Results
The cost of goods sold in fourth-quarter fiscal 2023 moved up 30% year over year to $639 million. The gross profit surged 65.3% year over year to $119 million. The adjusted operating income in the reported quarter was $62.9 million compared with the prior-year quarter’s operating profit of $14.9 million.
Carpenter Technology Corporation Price, Consensus and EPS Surprise
Carpenter Technology Corporation price-consensus-eps-surprise-chart | Carpenter Technology Corporation Quote
Segmental Performance
The Specialty Alloys Operations segment reported sales of $667 million compared with the prior-year quarter’s $485 million. We predicted the segment’s sales to be $523 million. The segment sold 61,528 pounds compared with the year-ago quarter’s 51,626 pounds. The reported figure surpassed our estimate of 54,035 pounds. CRS posted an operating profit of $80 million compared with the prior-year quarter’s $30 million. Our estimate for the segment’s operating profit was $69.8 million.
The Performance Engineered Products’ net sales increased 23.9% year over year to $119 million. The reported figure surpassed our estimate of $100 million. The segment sold 3,328 pounds compared with the year-ago quarter’s 2,808 pounds. It was higher than our projection of 2,900 pounds. The segment reported an operating profit of $5.9 million compared with the prior-year quarter’s $10.3 million. Our estimate for the segment’s operating profit was $10 million.
FY23 Performance
Carpenter Technology reported adjusted earnings of $1.14 per share in fiscal 2023, beating the Zacks Consensus Estimate of adjusted earnings of $1.04 per share. The company had reported an adjusted loss per share of $1.06 in fiscal 2022. Including one-time items, the company posted earnings per share of $1.14 against the year-ago quarter’s loss per share of $1.01.
Net sales increased 38.9% year over year to $2,550 million. The figure topped the Zacks Consensus Estimate of $2,516 million.
Financials
Carpenter Technology ended fiscal 2023 with cash and cash equivalents of $45 million compared with $154 million at the end of fiscal 2022. The long-term debt was $693 million at the end of the quarter compared with $692 as of the end of fiscal 2022. Cash flow from operating activities was $175 million in the quarter under review compared with $107 million in the prior-year quarter.
Price Performance
Shares of the company have gained 81.3% in the past year compared with the industry’s growth of 72%.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
Carpenter Technology currently sports a Zacks Rank 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Some other top-ranked stocks from the basic materials space are Livent Corporation , Orla Mining Ltd. (ORLA - Free Report) and PPG Industries, Inc. (PPG - Free Report) . LTHM and ORLA sport a Zacks Rank #1 at present, and PPG has a Zacks Rank #2 (Buy).
Livent has an average trailing four-quarter earnings surprise of 22.1%. The Zacks Consensus Estimate for LTHM’s fiscal 2023 earnings is pegged at $2.11 per share. The consensus estimate for 2023 earnings has moved north by 3.4% in the past 60 days. Its shares have gained 111.9% in the last year.
Orla Mining has an average trailing four-quarter earnings surprise of 85.4%. The Zacks Consensus Estimate for ORLA’s 2023 earnings is pegged at 15 cents per share. The consensus estimate for 2023 earnings has moved 87.5% north over the past 60 days. ORLA’s shares gained 62.7% in the last year.
The Zacks Consensus Estimate for PPG Industries’ fiscal 2023 earnings per share is pegged at $7.47, indicating growth of 23.5% from the prior-year actuals. Earnings estimates have moved 3% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 7.3%. PPG’s shares have gained 11.2% in the past year.