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Manitowoc (MTW) Q3 Earnings and Revenues Beat Estimates
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The Manitowoc Company, Inc. (MTW - Free Report) reported third-quarter 2020 adjusted earnings per share of 10 cents, which compared favorably with the Zacks Consensus Estimate of a loss of 26 cents. The upside can be attributed to improved order levels and cost reduction efforts. However, the bottom line figure plunged 81% year over year.
Including one-time items, the company reported loss per share of 1 cent in the quarter against an income of 51 cents per share in the prior-year quarter.
Manitowoc’s revenues declined 21% to $356 million from the prior-year quarter figure of $448 million. However, the top line surpassed the Zacks Consensus Estimate of $307 million.
The Manitowoc Company, Inc. Price, Consensus and EPS Surprise
Orders in the third quarter improved 10.5% year over year to around $390 million. Backlog as of the end of the reported quarter was $465 million, flat compared with the year-ago quarter’s end.
Operational Update
Cost of sales declined 19% year over year to $291 million in the reported quarter. Gross profit slumped 26% year over year to $65 million. Gross margin came in at 18.3%, reflecting a contraction of 140 basis point year over year.
Engineering, selling and administrative expenses fell 9% year over year to $49.5 million. Adjusted EBITDA was $24.8 million in the quarter, down from $42.8 million in the prior-year quarter thanks to lower sales. Manitowoc’s adjusted operating profit plunged 54% year over year to $15.6 million.
Financial Updates
Manitowoc reported cash and cash equivalents of $101 million as of Sep 30, 2020, down from $199 million recorded as of Dec 31, 2019. Long-term debt was $307 million as of Sep 30, 2020, compared with $308 million as of Dec 31, 2019. The company used $71 million of cash in operating activities in the nine-month period ended Sep 30, 2020 compared with cash utilization of $198 million in the year-ago period.
Provides Q4 Guidance
For fourth-quarter 2020, Manitowoc expects revenues between $425 million and $450.0 million. The company had reported revenues of $463.4 million in fourth-quarter 2019. Adjusted EBITDA is expected to be $18.0-$23.0 million compared with the adjusted EBITDA of $30.9 million in the comparable year-ago quarter.
Share Price Performance
Over the past three months, Manitowoc’s shares have fallen 22.5%, against the industry’s growth of 24.6%.
Zacks Rank & Key Picks
Manitowoc currently carries a Zacks Rank #4 (Sell).
Crown Holdings has a projected earnings growth rate of 11.7% for fiscal 2020. Over the past year, the company’s shares have appreciated 25% over the past three months.
iRobot has an estimated earnings growth rate of 18.8% for the ongoing year. The company’s shares have gained 11% in the past three months.
Worthington has an expected earnings growth rate of 19.2% for 2020. Over the past three months, the stock has climbed 20%.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Manitowoc (MTW) Q3 Earnings and Revenues Beat Estimates
The Manitowoc Company, Inc. (MTW - Free Report) reported third-quarter 2020 adjusted earnings per share of 10 cents, which compared favorably with the Zacks Consensus Estimate of a loss of 26 cents. The upside can be attributed to improved order levels and cost reduction efforts. However, the bottom line figure plunged 81% year over year.
Including one-time items, the company reported loss per share of 1 cent in the quarter against an income of 51 cents per share in the prior-year quarter.
Manitowoc’s revenues declined 21% to $356 million from the prior-year quarter figure of $448 million. However, the top line surpassed the Zacks Consensus Estimate of $307 million.
The Manitowoc Company, Inc. Price, Consensus and EPS Surprise
The Manitowoc Company, Inc. price-consensus-eps-surprise-chart | The Manitowoc Company, Inc. Quote
Orders in the third quarter improved 10.5% year over year to around $390 million. Backlog as of the end of the reported quarter was $465 million, flat compared with the year-ago quarter’s end.
Operational Update
Cost of sales declined 19% year over year to $291 million in the reported quarter. Gross profit slumped 26% year over year to $65 million. Gross margin came in at 18.3%, reflecting a contraction of 140 basis point year over year.
Engineering, selling and administrative expenses fell 9% year over year to $49.5 million. Adjusted EBITDA was $24.8 million in the quarter, down from $42.8 million in the prior-year quarter thanks to lower sales. Manitowoc’s adjusted operating profit plunged 54% year over year to $15.6 million.
Financial Updates
Manitowoc reported cash and cash equivalents of $101 million as of Sep 30, 2020, down from $199 million recorded as of Dec 31, 2019. Long-term debt was $307 million as of Sep 30, 2020, compared with $308 million as of Dec 31, 2019. The company used $71 million of cash in operating activities in the nine-month period ended Sep 30, 2020 compared with cash utilization of $198 million in the year-ago period.
Provides Q4 Guidance
For fourth-quarter 2020, Manitowoc expects revenues between $425 million and $450.0 million. The company had reported revenues of $463.4 million in fourth-quarter 2019. Adjusted EBITDA is expected to be $18.0-$23.0 million compared with the adjusted EBITDA of $30.9 million in the comparable year-ago quarter.
Share Price Performance
Over the past three months, Manitowoc’s shares have fallen 22.5%, against the industry’s growth of 24.6%.
Zacks Rank & Key Picks
Manitowoc currently carries a Zacks Rank #4 (Sell).
Some better ranked stocks in the Industrial Products sector are Crown Holdings, Inc. (CCK - Free Report) , iRobot Corporation (IRBT - Free Report) and Worthington Industries, Inc. (WOR - Free Report) . All of these stocks flaunt a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Crown Holdings has a projected earnings growth rate of 11.7% for fiscal 2020. Over the past year, the company’s shares have appreciated 25% over the past three months.
iRobot has an estimated earnings growth rate of 18.8% for the ongoing year. The company’s shares have gained 11% in the past three months.
Worthington has an expected earnings growth rate of 19.2% for 2020. Over the past three months, the stock has climbed 20%.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>