The Manitowoc Company, Inc. (MTW - Free Report) reported adjusted earnings per share (EPS) 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.
Price Performance
In the past year, Manitowoc’s shares have fallen 56.7% compared with the industry’s growth of 6.4%.
Zacks Rank and Stocks to Consider
Manitowoc currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are Tenaris (TS - Free Report) , Enerpac Tool Group Corp. (EPAC - Free Report) and Reliance Steel & Aluminum Co. (RS - Free Report) . While TS and EPAC sport a Zacks Rank #1 (Strong Buy), RS carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
Tenaris delivered a trailing four-quarter earnings surprise of 34%, on average. The Zacks Consensus Estimate for the company for 2022 indicates year-over-year growth of around 120%. The estimate has moved up 3% in the past 60 days. The TS stock has risen 32% in the past year.
Enerpac Tool delivered a four-quarter earnings surprise of 3.4%, on average. EPAC’s earnings estimates have increased 9% for fiscal 2023 (ending August 2023) in the past 60 days. The estimate indicates year-over-year growth of 44.6%. EPAC’s shares have gained 14% in the past year.
Reliance Steel & Aluminum’s earnings surprise in the last four quarters was 13.4%, on average. It has an expected earnings growth rate of 27.9% for fiscal 2022. The earnings estimates have moved up 0.1% over the past 60 days. The RS stock has gained 23% in the past year.
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The Manitowoc Company, Inc. (MTW - Free Report) reported adjusted earnings per share (EPS) 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.
Price Performance
In the past year, Manitowoc’s shares have fallen 56.7% compared with the industry’s growth of 6.4%.
Zacks Rank and Stocks to Consider
Manitowoc currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are Tenaris (TS - Free Report) , Enerpac Tool Group Corp. (EPAC - Free Report) and Reliance Steel & Aluminum Co. (RS - Free Report) . While TS and EPAC sport a Zacks Rank #1 (Strong Buy), RS carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
Tenaris delivered a trailing four-quarter earnings surprise of 34%, on average. The Zacks Consensus Estimate for the company for 2022 indicates year-over-year growth of around 120%. The estimate has moved up 3% in the past 60 days. The TS stock has risen 32% in the past year.
Enerpac Tool delivered a four-quarter earnings surprise of 3.4%, on average. EPAC’s earnings estimates have increased 9% for fiscal 2023 (ending August 2023) in the past 60 days. The estimate indicates year-over-year growth of 44.6%. EPAC’s shares have gained 14% in the past year.
Reliance Steel & Aluminum’s earnings surprise in the last four quarters was 13.4%, on average. It has an expected earnings growth rate of 27.9% for fiscal 2022. The earnings estimates have moved up 0.1% over the past 60 days. The RS stock has gained 23% in the past year.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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