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Crane's (CR) Q2 Earnings and Revenues Beat, '18 View Up
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Crane Company (CR - Free Report) reported better-than-expected results in the second quarter of 2018.Adjusted earnings for the quarter came in at $1.41 per share, surpassing the Zacks Consensus Estimate of $1.35. Also, the bottom line increased 20.5% from the year-ago tally of $1.17.
The company’s revenues totaled $851 million, up 21.1% year over year. Also, the reported figure beat the Zacks Consensus Estimate of $837 million. The improvement was driven by 18% benefit from acquired assets, 2% gain from favorable foreign currency movements and 2% increase in core sales.
At the quarter end, total order backlog was $1,096.6 million, up an impressive 59.2% year over year.
Segmental Details
Crane generates revenues from its four segments, which are briefly discussed below.
Revenues from Aerospace & Electronics totaled $187.2 million, up 9.4% year over year. It represented 22% of second-quarter revenues. Order backlog was $441 million, up 34.5%.
Payment & Merchandising Technologiesgenerated revenues of $324.3 million, up 63.6% year over year. It represented 38.1% of second-quarter revenues. Order backlog was $350.5 million (including backlog related to the acquired Crane Currency business) compared with $87 million in the prior-year quarter.
Engineered Materials’ revenues were $62.6 million, down 9.8% year over year. It represented 7.4% of second-quarter revenues. Order backlog at the segment decreased 11.4% from the year-ago quarter to $13.2 million.
Revenues from Fluid Handling increased 5% year over year to $276.9 million. It represented 32.5% of second-quarter revenues. Order backlog was $291.6 million, up 12.6%.
Costs
In the reported quarter, Crane’s cost of goods sold increased 22.8% year over year. The same metric, as a percentage of revenues, came in at 64.1% compared with 63.2% in the prior-year quarter. Selling, general and administrative expenses, as a percentage of revenues, were 21.9% compared with 21.4% in the year-ago quarter.
Balance Sheet and Cash Flow
As of Jun 30, 2018, Crane’s cash and cash equivalents were $318.2 million compared with $509.3 million in the year-ago quarter. Long-term debt increased to $937.1 million from $494.1 million as of Dec 31, 2017.
In the quarter, the company’s net cash generated from operating activities totaled $57.3 million compared with $66.9 million in the year-ago quarter. Free cash flow was $40.8 million in the same period. Dividend paid in the quarter was approximately $20.9 million.
Concurrent with the earnings release, Crane announced that its board of directors has approved the payment of a quarterly dividend of 35 cents to shareholders for third-quarter 2018. The dividend will be paid on Sep 10, 2018.
Outlook
For 2018, Crane anticipates earnings, excluding special items, to be within the $5.60-$5.80 per share range compared with $5.45-$5.65 guided earlier. GAAP earnings are estimated to be in the band of $4.90-$5.10 compared with the earlier guidance of $4.75-$4.95 per share.
Free cash flow is projected to lie within the $250-$280 million range compared with $240-$270 million anticipated earlier.
Zacks Rank & Key Picks
Crane currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks are Adobe Systems Incorporated (ADBE - Free Report) , Honeywell International Inc. (HON - Free Report) and AMETEK, Inc. (AME - Free Report) . While Adobe Systems sports a Zacks Rank #1 (Strong Buy), Honeywell International and AMETEK carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Adobe Systems surpassed estimates in each of the trailing four quarters with an average beat of 8.94%.
Honeywell International has exceeded estimates in each of the trailing four quarters, with an average beat of 2.44%.
AMETEK surpassed estimates in each of the trailing four quarters with an average beat of 6.03%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
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Crane's (CR) Q2 Earnings and Revenues Beat, '18 View Up
Crane Company (CR - Free Report) reported better-than-expected results in the second quarter of 2018.Adjusted earnings for the quarter came in at $1.41 per share, surpassing the Zacks Consensus Estimate of $1.35. Also, the bottom line increased 20.5% from the year-ago tally of $1.17.
The company’s revenues totaled $851 million, up 21.1% year over year. Also, the reported figure beat the Zacks Consensus Estimate of $837 million. The improvement was driven by 18% benefit from acquired assets, 2% gain from favorable foreign currency movements and 2% increase in core sales.
Crane Company Price, Consensus and EPS Surprise
Crane Company Price, Consensus and EPS Surprise | Crane Company Quote
At the quarter end, total order backlog was $1,096.6 million, up an impressive 59.2% year over year.
Segmental Details
Crane generates revenues from its four segments, which are briefly discussed below.
Revenues from Aerospace & Electronics totaled $187.2 million, up 9.4% year over year. It represented 22% of second-quarter revenues. Order backlog was $441 million, up 34.5%.
Payment & Merchandising Technologiesgenerated revenues of $324.3 million, up 63.6% year over year. It represented 38.1% of second-quarter revenues. Order backlog was $350.5 million (including backlog related to the acquired Crane Currency business) compared with $87 million in the prior-year quarter.
Engineered Materials’ revenues were $62.6 million, down 9.8% year over year. It represented 7.4% of second-quarter revenues. Order backlog at the segment decreased 11.4% from the year-ago quarter to $13.2 million.
Revenues from Fluid Handling increased 5% year over year to $276.9 million. It represented 32.5% of second-quarter revenues. Order backlog was $291.6 million, up 12.6%.
Costs
In the reported quarter, Crane’s cost of goods sold increased 22.8% year over year. The same metric, as a percentage of revenues, came in at 64.1% compared with 63.2% in the prior-year quarter. Selling, general and administrative expenses, as a percentage of revenues, were 21.9% compared with 21.4% in the year-ago quarter.
Balance Sheet and Cash Flow
As of Jun 30, 2018, Crane’s cash and cash equivalents were $318.2 million compared with $509.3 million in the year-ago quarter. Long-term debt increased to $937.1 million from $494.1 million as of Dec 31, 2017.
In the quarter, the company’s net cash generated from operating activities totaled $57.3 million compared with $66.9 million in the year-ago quarter. Free cash flow was $40.8 million in the same period. Dividend paid in the quarter was approximately $20.9 million.
Concurrent with the earnings release, Crane announced that its board of directors has approved the payment of a quarterly dividend of 35 cents to shareholders for third-quarter 2018. The dividend will be paid on Sep 10, 2018.
Outlook
For 2018, Crane anticipates earnings, excluding special items, to be within the $5.60-$5.80 per share range compared with $5.45-$5.65 guided earlier. GAAP earnings are estimated to be in the band of $4.90-$5.10 compared with the earlier guidance of $4.75-$4.95 per share.
Free cash flow is projected to lie within the $250-$280 million range compared with $240-$270 million anticipated earlier.
Zacks Rank & Key Picks
Crane currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks are Adobe Systems Incorporated (ADBE - Free Report) , Honeywell International Inc. (HON - Free Report) and AMETEK, Inc. (AME - Free Report) . While Adobe Systems sports a Zacks Rank #1 (Strong Buy), Honeywell International and AMETEK carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Adobe Systems surpassed estimates in each of the trailing four quarters with an average beat of 8.94%.
Honeywell International has exceeded estimates in each of the trailing four quarters, with an average beat of 2.44%.
AMETEK surpassed estimates in each of the trailing four quarters with an average beat of 6.03%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>