We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Manitowoc Taps Growth With Product Innovation, Risks Remain
Read MoreHide Full Article
On Sep 17, we issued an updated research report on The Manitowoc Company, Inc. (MTW - Free Report) . The company is poised to gain from product innovation, backlog strength, focus on cost control and pricing actions. However, steel tariffs and currency fluctuation might impede the company’s growth.
Let’s illustrate the factors in detail.
Manitowoc to Gain from Pricing Actions
Manitowoc continues to execute its strategy to cover cost inflation through pricing actions. Also, the company remains focused on cost controls, reducing headcount, increasing productivity and eliminating waste. It has also been taking aggressive steps to support supply-chain partners to ensure timely delivery of components.
Product Innovation — A Key Strategy
Manitowoc’s new product pipeline continues to remain strong. In June 2018, the company hosted almost 800 customers, dealers, and investors at the Crane Days event in Shady Grove. The company discussed its new lean transformation initiatives and announced the introduction of five more cranes. One of these cranes launched is the MLC100 — the only American-made 100-ton class crawler in the industry. The production of MLC100 will begin in Shady Grove from first-quarter 2019.
Manitowoc also previewed the new MCT 565 tower crane to more than 40 customers in China during the June-end quarter. Furthermore, the company shipped the first GRT8100 to a customer in the Middle East in June and has further orders scheduled for delivery.
Strong Backlog & New Order Wins to Aid Results
Manitowoc’s orders were pegged at $431 million in second-quarter 2018 — up 14% year over year. The company is witnessing higher year-over-year demand in the Americas and European regions. This is primarily because the crane market has started recovering as evident from the encouraging signs of growth in many of its key geographic markets. Further, backlog at the end of the quarter came in at $692 million, up 41% from the prior-year quarter, providing improved revenue visibility over the remainder of the year.
Tariff Remains a Threat for Manitowoc
The imposition of the 25% tariff on steel will affect Manitowoc's results, moving ahead. The company will record $10 million of incremental input costs in second-half 2018, primarily related to steel tariff.
Currency Fluctuation to Dampen Margins
Fluctuating foreign exchange rates are putting pressure on Manitowoc’s margins, particularly on the European-produced cranes that it sells in the United States.
Share Price Performance
Over the past year, Manitowoc has underperformed the industry with respect to price performance. The stock has lost around 26%, while the industry recorded growth of around 16% during the same time frame.
Zacks Rank & Key Picks
Manitowoc currently carries a Zacks Rank #3 (Hold).
Atkore has a long-term earnings growth rate of 10%. The stock has rallied 39% in a year’s time.
iRobot has a long-term earnings growth rate of 21%. Its shares have gained 34% in the past year.
Caterpillar has a long-term earnings growth rate of 15.6%. The company’s shares have been up 17% over the past year.
5 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2018 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs. A bonus Zacks Special Report names this breakthrough and the 5 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains.
Image: Bigstock
Manitowoc Taps Growth With Product Innovation, Risks Remain
On Sep 17, we issued an updated research report on The Manitowoc Company, Inc. (MTW - Free Report) . The company is poised to gain from product innovation, backlog strength, focus on cost control and pricing actions. However, steel tariffs and currency fluctuation might impede the company’s growth.
Let’s illustrate the factors in detail.
Manitowoc to Gain from Pricing Actions
Manitowoc continues to execute its strategy to cover cost inflation through pricing actions. Also, the company remains focused on cost controls, reducing headcount, increasing productivity and eliminating waste. It has also been taking aggressive steps to support supply-chain partners to ensure timely delivery of components.
Product Innovation — A Key Strategy
Manitowoc’s new product pipeline continues to remain strong. In June 2018, the company hosted almost 800 customers, dealers, and investors at the Crane Days event in Shady Grove. The company discussed its new lean transformation initiatives and announced the introduction of five more cranes. One of these cranes launched is the MLC100 — the only American-made 100-ton class crawler in the industry. The production of MLC100 will begin in Shady Grove from first-quarter 2019.
Manitowoc also previewed the new MCT 565 tower crane to more than 40 customers in China during the June-end quarter. Furthermore, the company shipped the first GRT8100 to a customer in the Middle East in June and has further orders scheduled for delivery.
Strong Backlog & New Order Wins to Aid Results
Manitowoc’s orders were pegged at $431 million in second-quarter 2018 — up 14% year over year. The company is witnessing higher year-over-year demand in the Americas and European regions. This is primarily because the crane market has started recovering as evident from the encouraging signs of growth in many of its key geographic markets. Further, backlog at the end of the quarter came in at $692 million, up 41% from the prior-year quarter, providing improved revenue visibility over the remainder of the year.
Tariff Remains a Threat for Manitowoc
The imposition of the 25% tariff on steel will affect Manitowoc's results, moving ahead. The company will record $10 million of incremental input costs in second-half 2018, primarily related to steel tariff.
Currency Fluctuation to Dampen Margins
Fluctuating foreign exchange rates are putting pressure on Manitowoc’s margins, particularly on the European-produced cranes that it sells in the United States.
Share Price Performance
Over the past year, Manitowoc has underperformed the industry with respect to price performance. The stock has lost around 26%, while the industry recorded growth of around 16% during the same time frame.
Zacks Rank & Key Picks
Manitowoc currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the same sector include Atkore International Group Inc. (ATKR - Free Report) , iRobot Corporation (IRBT - Free Report) and Caterpillar Inc. (CAT - Free Report) . While Atkore and iRobot sport a Zacks Rank #1 (Strong Buy), Caterpillar carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Atkore has a long-term earnings growth rate of 10%. The stock has rallied 39% in a year’s time.
iRobot has a long-term earnings growth rate of 21%. Its shares have gained 34% in the past year.
Caterpillar has a long-term earnings growth rate of 15.6%. The company’s shares have been up 17% over the past year.
5 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2018 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs. A bonus Zacks Special Report names this breakthrough and the 5 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains.
Click to see them right now >>