Back to top
Read MoreHide Full Article

Shares of The Manitowoc Company, Inc. (MTW - Free Report) reached a new 52-week high of $24.38 on Jan 8, up from its previous high of $23.71.

The stock closed at $23.99 at the end of trading yesterday, with a solid one-year return of about 45% and a year-to-date return of about 3%, outperforming the S&P 500. The average volume of shares traded over the last three months was roughly 2263K.

This Wisconsin-based commercial foodservice equipment manufacturer has beaten the Zacks Consensus Estimate three times in the trailing four quarters with an average surprise of 5.92%. Manitowoc has a market cap of $3.2 billion and long-term expected earnings growth of 15%.

Growth Drivers

On Oct 24, Manitowoc reported third-quarter 2013 adjusted earnings of 39 cents per share, soaring 129% year over year. The improvement was driven by strong performance by the Crane segment, successful introduction of new products as well as execution of Manitowoc’s strategic initiatives.

Total revenue also rose 7% year over year to $1,014 million in the reported quarter, driven by sales growth in the Crane segment.

For full-year 2013, Manitowoc expects revenues in the Crane segment to rise in mid single-digits and in Foodservice to increase in modest single-digits. The company forecasts high single-digit improvement in operating margins in the Crane segment and mid-teen gains in the Foodservice segment.

Demand in the Crane segment is expected to grow significantly due to turnaround in the construction sector. The segment will also be benefited by introduction of new products and services. Additionally, an increase in global energy and power generation investment will drive segment growth further.

On the other hand, the Foodservice segment will gain from new manufacturing facilities and new products. The company also remains focused on cost reduction and improving efficiency, which will help boost its earnings.

In addition, Manitowoc remains committed to make investments in global manufacturing initiatives for the long-term growth. The company continues to be benefited from product innovation in Cranes and Foodservice segments. Manitowoc expects to unveil new products over the next several months, including an array of technologically advanced products that will premiere at ConExpo 2014.

Furthermore, Manitowoc’s ongoing ERP deployment initiative will be fully implemented in 2016 and will provide cost and efficiency benefits in the long term.

Currently, Manitowoc carries a Zacks Rank #4 (Sell).

Other Stocks to Consider

Some better-ranked stocks in the same sector include Kubota Corp. (KUBTY - Free Report) , Terex Corp. (TEX - Free Report) and Columbus McKinnon Corporation (CMCO - Free Report) . While Kubota holds a Zacks Rank #1 (Strong Buy), Terex and Columbus McKinnon have a Zacks Rank #2 (Buy).

More from Zacks Analyst Blog

You May Like