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Why Is The Manitowoc Company, Inc. (MTW) Up 4.5% Since Last Earnings Report?
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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 added about 4.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is The Manitowoc Company, Inc. due for a pullback? 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 drivers.
Manitowoc's Earnings Beat Estimates in Q3, Sales Miss
Manitowoc reported adjusted earnings per share of 10 cents in third-quarter 2022, beating the Zacks Consensus Estimate of 8 cents per share. The bottom line improved 67% year over year.
Including one-time items, the company reported EPS of 7 cents in the quarter compared with the prior-year quarter’s loss of 1 cent per share. Manitowoc’s revenues were up 12% year over year to $455 million in the quarter under review. The top line missed the Zacks Consensus Estimate of $496 million. Unfavorable changes in foreign currency translation rates had an impact of $31.6 million on sales.
Orders in the reported quarter declined 12.7% year over year to $472 million. The backlog at the end of the quarter was $943 million, up 6% from the last quarter.
Operational Update
The cost of sales moved up 13% year over year to $380 million in the reported quarter. Gross profit was up 8% year over year to $74 million. The gross margin was 16.3% in the reported quarter compared with 17.1% in the prior-year quarter.
Engineering, selling and administrative expenses increased 10% year over year to $66 million. Adjusted operating income was $8.7 million in the quarter, down from $9.7 million in the prior-year quarter. Adjusted EBITDA in the reported quarter was $24 million compared with $20 million in the prior-year quarter. Adjusted EBITDA margin contracted to 5.3% from the year-ago quarter’s 4.9%.
Financial Update
Manitowoc reported cash and cash equivalents of $43 million at the end of the third quarter of 2022, down from $75 million at 2021-end. Long-term debt was $404 million at the end of the quarter under review, up from $400 million at 2021-end. The company used $6.2 million of cash in operating activities in the third quarter of 2022 compared with $18.4 million in the last-year quarter.
Outlook
Citing persistent supply chain disruptions and continued inflationary pressure, Manitowoc expects EBITDA to come in at the lower end of the previously guided range of $130-$160 million. MTW had earlier provided revenue guidance in the range of $2.0 billion to $2.2 billion and adjusted EPS between 65 cents and $1.35.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 28.89% due to these changes.
VGM Scores
At this time, The Manitowoc Company, Inc. has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, The Manitowoc Company, Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
The Manitowoc Company, Inc. is part of the Zacks Manufacturing - Construction and Mining industry. Over the past month, Terex (TEX - Free Report) , a stock from the same industry, has gained 4.1%. The company reported its results for the quarter ended September 2022 more than a month ago.
Terex reported revenues of $1.12 billion in the last reported quarter, representing a year-over-year change of +12.8%. EPS of $1.20 for the same period compares with $0.67 a year ago.
Terex is expected to post earnings of $1.13 per share for the current quarter, representing a year-over-year change of +37.8%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
Terex has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
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Why Is The Manitowoc Company, Inc. (MTW) Up 4.5% Since Last Earnings Report?
It has been about a month since the last earnings report for The Manitowoc Company, Inc. (MTW - Free Report) . Shares have added about 4.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is The Manitowoc Company, Inc. due for a pullback? 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 drivers.
Manitowoc's Earnings Beat Estimates in Q3, Sales Miss
Manitowoc reported adjusted earnings per share of 10 cents in third-quarter 2022, beating the Zacks Consensus Estimate of 8 cents per share. The bottom line improved 67% year over year.
Including one-time items, the company reported EPS of 7 cents in the quarter compared with the prior-year quarter’s loss of 1 cent per share.
Manitowoc’s revenues were up 12% year over year to $455 million in the quarter under review. The top line missed the Zacks Consensus Estimate of $496 million. Unfavorable changes in foreign currency translation rates had an impact of $31.6 million on sales.
Orders in the reported quarter declined 12.7% year over year to $472 million. The backlog at the end of the quarter was $943 million, up 6% from the last quarter.
Operational Update
The cost of sales moved up 13% year over year to $380 million in the reported quarter. Gross profit was up 8% year over year to $74 million. The gross margin was 16.3% in the reported quarter compared with 17.1% in the prior-year quarter.
Engineering, selling and administrative expenses increased 10% year over year to $66 million. Adjusted operating income was $8.7 million in the quarter, down from $9.7 million in the prior-year quarter. Adjusted EBITDA in the reported quarter was $24 million compared with $20 million in the prior-year quarter. Adjusted EBITDA margin contracted to 5.3% from the year-ago quarter’s 4.9%.
Financial Update
Manitowoc reported cash and cash equivalents of $43 million at the end of the third quarter of 2022, down from $75 million at 2021-end. Long-term debt was $404 million at the end of the quarter under review, up from $400 million at 2021-end. The company used $6.2 million of cash in operating activities in the third quarter of 2022 compared with $18.4 million in the last-year quarter.
Outlook
Citing persistent supply chain disruptions and continued inflationary pressure, Manitowoc expects EBITDA to come in at the lower end of the previously guided range of $130-$160 million. MTW had earlier provided revenue guidance in the range of $2.0 billion to $2.2 billion and adjusted EPS between 65 cents and $1.35.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 28.89% due to these changes.
VGM Scores
At this time, The Manitowoc Company, Inc. has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, The Manitowoc Company, Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
The Manitowoc Company, Inc. is part of the Zacks Manufacturing - Construction and Mining industry. Over the past month, Terex (TEX - Free Report) , a stock from the same industry, has gained 4.1%. The company reported its results for the quarter ended September 2022 more than a month ago.
Terex reported revenues of $1.12 billion in the last reported quarter, representing a year-over-year change of +12.8%. EPS of $1.20 for the same period compares with $0.67 a year ago.
Terex is expected to post earnings of $1.13 per share for the current quarter, representing a year-over-year change of +37.8%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
Terex has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.