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Crane Co. (CR - Free Report) reported better-than-expected results for third-quarter 2017. The company noted that this stellar performance stemmed from its growth and productivity initiatives as well as lower tax rate.
Earnings/Revenues
Quarterly adjusted earnings came in at $1.13 per share, comfortably surpassing the Zacks Consensus Estimate of $1.09. The bottom line came in higher than the year-ago tally of $1.07 per share.
Net sales during the quarter came in at $695.9 million, handily beating the Zacks Consensus Estimate of $683 million. Also, the top line came in higher than the year-ago figure of $694.2 million. The upside was primarily driven by acquisition benefits and favorable foreign-exchange translation impact.
Segmental Details
Revenues of Fluid Handling segment came in at $266.9 million in the reported quarter, up 8.9% year over year. Core sales of the segment was up 4% year over year.
Aggregate revenues from the Payment & Merchandising Technologies segment were $188.6 million, up 1% year over year. Core sales of the segment was up 2% year over year.
Engineered Materials segment’s net sales during the quarter came in at $68.4 million, increasing 6.5% year over year. The upswing was driven by strong demand from the Recreational Vehicle market.
However, the Aerospace & Electronics segment’s revenues came in at $172 million, dropping 13.2% year over year. The downside was witnessed due to unlikely comparisons related to the shipments of a massive military program.
Cost of sales in the reported quarter was $441.5 million, down from $449.1 million reported in the comparable period last year.
Selling, general and administrative expenses, as a percentage of revenues, came in at 21.3%, compared with 20.3% in the year-ago quarter. Operating margin in third-quarter 2017 was 15.1%, up 10 basis points year over year.
Balance Sheet/ Cash Flow
Exiting the third quarter, Crane’s cash and cash equivalents were $572.2 million, above $509.7 million recorded at the end of 2016. Long-term debt totaled $745.9 million, marginally above $745.3 million recorded on Dec 31, 2016.
In the third quarter, the company negated net cash worth $103.8 million from operating activities, down 11% year over year. Capital spending summed $13.5 million, up from $11.9 million spent in the year-ago quarter.
Concurrent with the earnings release, Crane announced that its board of directors has approved the payment of a quarterly dividend of 33 cents per share for fourth-quarter 2017. The dividend will be paid on Dec 8 to shareholders on record as of Nov 30, 2017.
Outlook
Crane raised the lower-end of its earnings guidance for 2017. Full-year 2017 earnings are anticipated to lie within the $4.45-$4.55 per share range, as against the prior projection of $4.35-$4.55 per share.
Stocks to Consider
Better-ranked stocks in the same space are listed below:
Danaher Corporation (DHR - Free Report) also carries a Zacks Rank of 2. Over the next three to five years, the company’s EPS is projected to be up 11.7%.
Honeywell International Inc. (HON - Free Report) has a Zacks Rank of 2. The company’s EPS is estimated to improve 9.4% during the same time frame.
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It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Crane (CR) Tops Q3 Earnings & Revenues, Raises Guidance
Crane Co. (CR - Free Report) reported better-than-expected results for third-quarter 2017. The company noted that this stellar performance stemmed from its growth and productivity initiatives as well as lower tax rate.
Earnings/Revenues
Quarterly adjusted earnings came in at $1.13 per share, comfortably surpassing the Zacks Consensus Estimate of $1.09. The bottom line came in higher than the year-ago tally of $1.07 per share.
Net sales during the quarter came in at $695.9 million, handily beating the Zacks Consensus Estimate of $683 million. Also, the top line came in higher than the year-ago figure of $694.2 million. The upside was primarily driven by acquisition benefits and favorable foreign-exchange translation impact.
Segmental Details
Revenues of Fluid Handling segment came in at $266.9 million in the reported quarter, up 8.9% year over year. Core sales of the segment was up 4% year over year.
Aggregate revenues from the Payment & Merchandising Technologies segment were $188.6 million, up 1% year over year. Core sales of the segment was up 2% year over year.
Engineered Materials segment’s net sales during the quarter came in at $68.4 million, increasing 6.5% year over year. The upswing was driven by strong demand from the Recreational Vehicle market.
However, the Aerospace & Electronics segment’s revenues came in at $172 million, dropping 13.2% year over year. The downside was witnessed due to unlikely comparisons related to the shipments of a massive military program.
Crane Company Price, Consensus and EPS Surprise
Crane Company Price, Consensus and EPS Surprise | Crane Company Quote
Cost of sales in the reported quarter was $441.5 million, down from $449.1 million reported in the comparable period last year.
Selling, general and administrative expenses, as a percentage of revenues, came in at 21.3%, compared with 20.3% in the year-ago quarter. Operating margin in third-quarter 2017 was 15.1%, up 10 basis points year over year.
Balance Sheet/ Cash Flow
Exiting the third quarter, Crane’s cash and cash equivalents were $572.2 million, above $509.7 million recorded at the end of 2016. Long-term debt totaled $745.9 million, marginally above $745.3 million recorded on Dec 31, 2016.
In the third quarter, the company negated net cash worth $103.8 million from operating activities, down 11% year over year. Capital spending summed $13.5 million, up from $11.9 million spent in the year-ago quarter.
Concurrent with the earnings release, Crane announced that its board of directors has approved the payment of a quarterly dividend of 33 cents per share for fourth-quarter 2017. The dividend will be paid on Dec 8 to shareholders on record as of Nov 30, 2017.
Outlook
Crane raised the lower-end of its earnings guidance for 2017. Full-year 2017 earnings are anticipated to lie within the $4.45-$4.55 per share range, as against the prior projection of $4.35-$4.55 per share.
Stocks to Consider
Better-ranked stocks in the same space are listed below:
Bunzl PLC (BZLFY - Free Report) currently holds a Zacks Rank of 2 (Buy). The company’s earnings per share (EPS) is projected to be up 3.2% in the next three to five years. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Danaher Corporation (DHR - Free Report) also carries a Zacks Rank of 2. Over the next three to five years, the company’s EPS is projected to be up 11.7%.
Honeywell International Inc. (HON - Free Report) has a Zacks Rank of 2. The company’s EPS is estimated to improve 9.4% during the same time frame.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>