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The Manitowoc Company (MTW) Down 2.5% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for The Manitowoc Company, Inc. (MTW - Free Report) . Shares have lost about 2.5% 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 due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Manitowoc Q1 Earnings Miss Estimates, Revenues Dip Y/Y
Manitowoc reported adjusted earnings per share (EPS) of 14 cents in first-quarter 2024, missing the Zacks Consensus Estimate of 19 cents. The bottom line marked a decline from earnings of 46 cents in the year-ago quarter.
Including one-time items, the company reported an EPS of 12 cents in the quarter compared with the prior-year quarter’s 46 cents.
Manitowoc’s revenues fell 2.6% year over year to $495 million in the quarter under review. The top line beat the Zacks Consensus Estimate of $489 million.
Orders in the reported quarter increased 5.6% year over year to $554 million. The backlog at the end of the quarter was $971 million.
Operational Update
Cost of sales increased 0.1% year over year to $403 million in the reported quarter. The gross profit moved down 13% year over year to $93 million. The gross margin was 18.7% in the reported quarter compared with 20.9% in the prior-year quarter.
Engineering, selling and administrative expenses increased 1.2% year over year to $76 million. Adjusted operating income was $15.9 million in the quarter, down from $30.2 million in the prior-year quarter. Adjusted EBITDA in the reported quarter was $31 million compared with $45 million in the prior-year quarter. The adjusted EBITDA margin was 6.3%, down from the year-ago quarter’s 8.9%.
Financial Updates
Manitowoc reported cash and cash equivalents of $31.5 million at the end of the first quarter of 2024, down from $34 million at 2023 end. The long-term debt was $373 million at the end of the quarter under review, up from $359 million at the 2023-end. The company used $31 million in cash in operating activities in the first quarter of 2024 against the cash inflow of $15 million in the prior-year quarter.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -5.91% due to these changes.
VGM Scores
At this time, The Manitowoc Company has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise The Manitowoc Company has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
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The Manitowoc Company (MTW) Down 2.5% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for The Manitowoc Company, Inc. (MTW - Free Report) . Shares have lost about 2.5% 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 due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Manitowoc Q1 Earnings Miss Estimates, Revenues Dip Y/Y
Manitowoc reported adjusted earnings per share (EPS) of 14 cents in first-quarter 2024, missing the Zacks Consensus Estimate of 19 cents. The bottom line marked a decline from earnings of 46 cents in the year-ago quarter.
Including one-time items, the company reported an EPS of 12 cents in the quarter compared with the prior-year quarter’s 46 cents.
Manitowoc’s revenues fell 2.6% year over year to $495 million in the quarter under review. The top line beat the Zacks Consensus Estimate of $489 million.
Orders in the reported quarter increased 5.6% year over year to $554 million. The backlog at the end of the quarter was $971 million.
Operational Update
Cost of sales increased 0.1% year over year to $403 million in the reported quarter. The gross profit moved down 13% year over year to $93 million. The gross margin was 18.7% in the reported quarter compared with 20.9% in the prior-year quarter.
Engineering, selling and administrative expenses increased 1.2% year over year to $76 million. Adjusted operating income was $15.9 million in the quarter, down from $30.2 million in the prior-year quarter. Adjusted EBITDA in the reported quarter was $31 million compared with $45 million in the prior-year quarter. The adjusted EBITDA margin was 6.3%, down from the year-ago quarter’s 8.9%.
Financial Updates
Manitowoc reported cash and cash equivalents of $31.5 million at the end of the first quarter of 2024, down from $34 million at 2023 end. The long-term debt was $373 million at the end of the quarter under review, up from $359 million at the 2023-end. The company used $31 million in cash in operating activities in the first quarter of 2024 against the cash inflow of $15 million in the prior-year quarter.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -5.91% due to these changes.
VGM Scores
At this time, The Manitowoc Company has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise The Manitowoc Company has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.