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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

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%.

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