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Carpenter Technology Q2 Earnings Top Estimates, Revenues Rise Y/Y

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Carpenter Technology Corporation (CRS - Free Report) reported adjusted earnings of $1.66 per share for second-quarter fiscal 2025, beating the Zacks Consensus Estimate of adjusted earnings of $1.56. It had posted adjusted earnings of 85 cents in the year-ago quarter. The upside is driven by ongoing improvements in the product mix.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Net revenues increased 8.4% year over year to $678 million in the reported quarter. However, the figure missed the Zacks Consensus Estimate of $709 million. Shipment volumes were down 6% year over year.

CRS witnessed a year-over-year revenue increase of 35.3% in the Aerospace and Defense end-use market. Revenues in the Energy end-market were down 12.5%. The metric for the Medical end-use markets rose 0.5%. Revenues in the Distribution markets decreased 9.2%, whereas the same for Industrial and Consumer end-use markets declined 16%. The Transportation end-use market’s revenues fell 20.1%.

Carpenter Technology Corporation Price, Consensus and EPS Surprise

 

Carpenter Technology Corporation Price, Consensus and EPS Surprise

Carpenter Technology Corporation price-consensus-eps-surprise-chart | Carpenter Technology Corporation Quote

CRS’s Q2 Operational Results

The cost of goods sold in second-quarter fiscal 2025 moved down 0.4% year over year to $499 million. The gross profit increased 44.8% year over year to $178 million.

Adjusted operating income in the reported quarter was $119 million compared with the prior-year quarter’s $70 million. The adjusted operating margin in the quarter under review was 17.6% compared with 11.2% in the year-ago quarter.

Carpenter Technology’s Q2 Segmental Performance

The Specialty Alloys Operations segment reported sales of $602 million compared with the prior-year quarter’s $549 million. We predicted the segment’s sales to be $620 million. The segment sold 44,714 pounds compared with the year-ago quarter’s 50,114 pounds. The reported figure missed our estimate of 51,181 pounds. The segment posted an operating profit of $136 million compared with the prior-year quarter’s $83 million. Our estimate for the segment’s operating profit was $139 million.

The Performance Engineered Products’ net sales fell 0.7% year over year to $95 million. The reported figure missed our estimate of $106 million. The segment sold 2,208 pounds compared with the year-ago quarter’s 2,318 pounds. It was lower than our projection of 2,545 pounds. The segment reported an operating profit of $7 million, flat year-over-year. Our estimate for the segment’s operating profit was $6.9 million.

CRS’ Cash Flow & Balance Sheet Updates

Carpenter Technology ended second-quarter fiscal 2025 with cash and cash equivalents of $162 million compared with $199 million at the end of fiscal 2024. The long-term debt was $694.8 million at the end of the quarter compared with $694.2 million as of the end of fiscal 2024. 

Cash flow from operating activities was $67.9 million in the quarter under review compared with $14.6 million in the prior-year quarter.

Carpenter Technology’s Share Price Performance

Shares of the company have gained 228.9% in the past year compared with the industry’s growth of 74.6%.

 

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CRS’s Zacks Rank

Carpenter Technology currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Peer Performance

Commercial Metals Company (CMC - Free Report) reported adjusted earnings per share (EPS) of 78 cents for first-quarter fiscal 2025 (ended Nov. 30, 2024), in line with the Zacks Consensus Estimate. The company’s earnings fell 47.7% from the prior-year quarter’s $1.49.

Commercial Metals’ net sales in the reported quarter were $1.91 billion, down 4.7% from the year-ago quarter’s $2 billion. The reported figure surpassed the Zacks Consensus Estimate of $1.89 billion.

Steel - Speciality Stock Awaiting Results

ATI Inc. (ATI - Free Report) , scheduled to release fourth-quarter fiscal 2024 results on Feb. 4, has a trailing four-quarter average surprise of 1.2%. The Zacks Consensus Estimate for ATI’s fourth-quarter fiscal 2024 earnings is pegged at 60 cents per share, implying a year-over-year fall of 6.4%.

The Zacks Consensus Estimate for the company’s top line is pegged at $1.1 billion, indicating growth of 1.8% from the prior-year reported figure.

Metallus Inc. (MTUS - Free Report) , expected to release fourth-quarter fiscal 2024 results soon, has a trailing four-quarter average surprise of negative 55.7%. The Zacks Consensus Estimate for MTUS’s fourth-quarter fiscal 2024 earnings is pegged at 1 cents per share, implying a year-over-year fall of 92.2%.

The Zacks Consensus Estimate for the company’s top line is pegged at $244.7 million, indicating a fall of 25.4% from the prior-year reported figure.


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