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Manitowoc (MTW) Q4 Earnings Miss Estimates, Decline Y/Y

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The Manitowoc Company, Inc. (MTW - Free Report) reported adjusted earnings per share (EPS) of 9 cents in fourth-quarter 2023, missing the Zacks Consensus Estimate of 19 cents. Compared with an EPS of 74 cents in the fourth quarter of 2022, earnings in the quarter under review marked a substantial slump of 87.8% due to lower sales.

Including one-time items, the company reported a loss of 23 cents per share in the fourth quarter of 2023 compared with the year-ago quarter’s loss of $4.10.

Manitowoc’s revenues were down 4% year over year to $596 million in the quarter under review. The top line, however, surpassed the Zacks Consensus Estimate of $575 million. Favorable changes in foreign currency translation rates had an impact of $9 million on sales.

Orders in the reported quarter decreased 32.8% year over year to $475.7 million. The backlog at the end of the fourth quarter was $917 million, which decreased 10.8% from the third quarter of 2023.

The Manitowoc Company, Inc. Price, Consensus and EPS Surprise

 

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 declined 1.7% year over year to $497 million in the reported quarter. The gross profit was down 15% year over year to $99 million. The gross margin was 16.6% in the reported quarter compared with 18.7% in the year-ago quarter.

Engineering, selling and administrative expenses increased 11% year over year to $88.2 million. Total adjusted operating costs and expenses were $78 million in the quarter, down 2% year over year.

Adjusted operating income was $20.9 million in the quarter, down 42.6% from $36.4 million in the year-ago quarter. Adjusted EBITDA in the reported quarter was $36.5 million compared with $51.5 million in the year-ago quarter. The adjusted EBITDA margin declined to 6.1% from the year-ago quarter’s 8.3%.

Cash Position & Balance Sheet

Manitowoc reported cash and cash equivalents of $34 million at the end of 2023, down from $64 million at 2022 end. The long-term debt was $359 million at the end of 2023, down from $380 million at 2022 end.

The company generated $63 million in cash in operating activities in 2023 compared with $77 million in 2023.

2023 Results

Manitowoc reported adjusted EPS of $1.52 in 2023, which was 43% higher than the EPS of $1.06 reported in 2022. The bottom-line figure, however, missed the Zacks Consensus Estimate of $1.62.

Including one-time items, the company reported EPS of $1.09 in 2023 against a loss of $3.51 per share in 2022.

Manitowoc’s revenues were up 9.6% year over year to $2.23 billion in 2023. The top line surpassed the consensus estimate of $2.21 billion. Favorable changes in foreign currency translation rates had an impact of $15.5 million on sales.

Guidance for 2024

Manitowoc expects revenues in the range of $2.275 billion to $2.375 billion in 2024. This guidance is backed by a strong backlog and strong global demand for mobile cranes. However, the European tower crane market is expected to remain challenging.

Adjusted EBITDA is projected to be between $150 million and $180 million. The company expects to report adjusted EPS between 95 cents and $1.55 in 2024.

Price Performance

In the past year, Manitowoc’s shares have gained 14.5% compared with the industry’s 25% growth.

 

Zacks Investment Research
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Zacks Rank and Other Stocks to Consider

Manitowoc 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 Industrial Products sector are Cadre Holdings, Inc. (CDRE - Free Report) , AZZ Inc. (AZZ - Free Report) and Applied Industrial Technologies (AIT - Free Report) . CDRE and AZZ currently flaunt a Zacks Rank of 1, and AIT carries a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for Cadre Holdings’ 2024 earnings is pegged at $1.11 per share. The consensus estimate for 2024 earnings has moved 1% north in the past 60 days and suggests year-over-year growth of 16.7%. The company has a trailing four-quarter average earnings surprise of 33%. CDRE shares have gained 52% in the past year.

The Zacks Consensus Estimate for AZZ’s fiscal 2024 EPS is pegged at $4.19. The consensus estimate for 2024 earnings has moved 2% north in the past 60 days. The company has a trailing four-quarter average earnings surprise of 37.6%. AZZ shares have rallied 76% in the past year.

Applied Industrial has an average trailing four-quarter earnings surprise of 13.9%. The Zacks Consensus Estimate for AIT’s 2024 earnings is pinned at $9.43 per share, which indicates year-over-year growth of 7.8%. Estimates have been unchanged in the past 60 days. The company’s shares have gained 31.8% in a year.

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