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Carpenter Technology Corporation (CRS - Free Report) reported an adjusted loss per share of 58 cents in second-quarter fiscal 2022 (ended Dec 31, 2021), narrower than the Zacks Consensus Estimate of a loss of 63 cents. The company had reported an adjusted loss per share of 61 cents in the year-ago period.
Including one-time items, the company posted a loss per share of 61 cents compared with the year-ago quarter’s loss of $1.76 per share.
Net sales increased 13% year over year to $396 million in the reported quarter. The figure surpassed the Zacks Consensus Estimate of $353 million.
The company witnessed a year-over-year revenue decline of 9.7% in the Aerospace and Defense end-use market. Revenues in the Energy end-market were down 9.6% year on year. Revenues in the Medical end-use markets increased 39% year over year. Revenues in the distribution and industrial end-use markets climbed 34% and 18%, year over year, respectively. Transportation end-use market sales also increased 10.4% year over year.
Operational Results
The cost of goods sold in second-quarter fiscal 2022 moved up 12% year over year to $383 million. Gross profit came in at $13.1 million compared with the year-ago quarter’s $6 million. The adjusted operating loss in the reported quarter was $29.8 million compared with the prior-year quarter’s $32.3 million.
Carpenter Technology Corporation Price, Consensus and EPS Surprise
The Specialty Alloys Operations (SAO) segment reported sales of $330.8 million compared with the prior-year quarter’s $300.4 million. The segment sold 43,248 pounds compared with the year-ago quarter’s 38,602 pounds. It posted an operating loss of $20.3 million compared with $11.6 million in the prior-year quarter.
The Performance Engineered Products’ (PEP) net sales increased 56.4% year over year to $86 million during the fiscal second quarter. The segment sold 2,776 pounds, up 81% from the year-ago quarter’s figure. The segment reported an operating profit of $3 million against the prior-year quarter’s operating loss of $7.2 million.
Financials
Carpenter Technology ended the fiscal second quarter with cash and cash equivalents of $97 million compared with $287 million at the end of fiscal 2021. The long-term debt was $695 million at the end of second-quarter fiscal 2022, in line with the fiscal 2021 end’s figure. Cash utilized in operating activities was $136 million in the six months ended as of Dec 31, 2021, against the cash inflow of $172 million in the prior-year period.
Free cash outflow in the reported quarter was $116 million against the cash inflow of $51 million in the year-ago quarter.
Carpenter Technology expects to benefit from the increasing demand trends across its end-use markets and strong customer relationships. Repairing is progressing well at its Reading press, which was impacted by a mechanical failure and led to an unplanned outage. The company expects the press to be operational in the fiscal third quarter.
Price Performance
Carpenter Technology’s shares have declined 4% in the past year against the industry's return of 7.4%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Carpenter Technology currently carries a Zacks Rank #3 (Hold).
Commercial Metals has an expected earnings growth rate of 62% for the current fiscal year. The Zacks Consensus Estimate for CMC’s current-year earnings has been revised 40% upward in the past 60 days.
Commercial Metals’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average being 13.13%. CMC has gained 73% over a year.
Haynes has an expected earnings growth rate of 395.8% for fiscal 2022. The Zacks Consensus Estimate for fiscal 2022 earnings has been revised 128% upward in the past 60 days.
Haynes’ bottom line beat the Zacks Consensus Estimate in three of the trailing four quarters, the average surprise being 116.8%. HAYN has rallied 67% over a year.
AdvanSix has an expected earnings growth rate of 7.4% for the current year. The Zacks Consensus Estimate for current-year earnings has moved 5.3% north in the past 60 days.
AdvanSix’s bottom line beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 47%. ASIX has soared 83% over a year.
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Carpenter Technology's (CRS) Q2 Earnings & Sales Beat Estimates
Carpenter Technology Corporation (CRS - Free Report) reported an adjusted loss per share of 58 cents in second-quarter fiscal 2022 (ended Dec 31, 2021), narrower than the Zacks Consensus Estimate of a loss of 63 cents. The company had reported an adjusted loss per share of 61 cents in the year-ago period.
Including one-time items, the company posted a loss per share of 61 cents compared with the year-ago quarter’s loss of $1.76 per share.
Net sales increased 13% year over year to $396 million in the reported quarter. The figure surpassed the Zacks Consensus Estimate of $353 million.
The company witnessed a year-over-year revenue decline of 9.7% in the Aerospace and Defense end-use market. Revenues in the Energy end-market were down 9.6% year on year. Revenues in the Medical end-use markets increased 39% year over year. Revenues in the distribution and industrial end-use markets climbed 34% and 18%, year over year, respectively. Transportation end-use market sales also increased 10.4% year over year.
Operational Results
The cost of goods sold in second-quarter fiscal 2022 moved up 12% year over year to $383 million. Gross profit came in at $13.1 million compared with the year-ago quarter’s $6 million. The adjusted operating loss in the reported quarter was $29.8 million compared with the prior-year quarter’s $32.3 million.
Carpenter Technology Corporation Price, Consensus and EPS Surprise
Carpenter Technology Corporation price-consensus-eps-surprise-chart | Carpenter Technology Corporation Quote
Segment Performance
The Specialty Alloys Operations (SAO) segment reported sales of $330.8 million compared with the prior-year quarter’s $300.4 million. The segment sold 43,248 pounds compared with the year-ago quarter’s 38,602 pounds. It posted an operating loss of $20.3 million compared with $11.6 million in the prior-year quarter.
The Performance Engineered Products’ (PEP) net sales increased 56.4% year over year to $86 million during the fiscal second quarter. The segment sold 2,776 pounds, up 81% from the year-ago quarter’s figure. The segment reported an operating profit of $3 million against the prior-year quarter’s operating loss of $7.2 million.
Financials
Carpenter Technology ended the fiscal second quarter with cash and cash equivalents of $97 million compared with $287 million at the end of fiscal 2021. The long-term debt was $695 million at the end of second-quarter fiscal 2022, in line with the fiscal 2021 end’s figure. Cash utilized in operating activities was $136 million in the six months ended as of Dec 31, 2021, against the cash inflow of $172 million in the prior-year period.
Free cash outflow in the reported quarter was $116 million against the cash inflow of $51 million in the year-ago quarter.
Carpenter Technology expects to benefit from the increasing demand trends across its end-use markets and strong customer relationships. Repairing is progressing well at its Reading press, which was impacted by a mechanical failure and led to an unplanned outage. The company expects the press to be operational in the fiscal third quarter.
Price Performance
Carpenter Technology’s shares have declined 4% in the past year against the industry's return of 7.4%.
Zacks Rank & Stocks to Consider
Carpenter Technology currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Commercial Metals Company (CMC - Free Report) , Haynes International, Inc. (HAYN - Free Report) and AdvanSix Inc. (ASIX - Free Report) . Each stock sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Commercial Metals has an expected earnings growth rate of 62% for the current fiscal year. The Zacks Consensus Estimate for CMC’s current-year earnings has been revised 40% upward in the past 60 days.
Commercial Metals’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average being 13.13%. CMC has gained 73% over a year.
Haynes has an expected earnings growth rate of 395.8% for fiscal 2022. The Zacks Consensus Estimate for fiscal 2022 earnings has been revised 128% upward in the past 60 days.
Haynes’ bottom line beat the Zacks Consensus Estimate in three of the trailing four quarters, the average surprise being 116.8%. HAYN has rallied 67% over a year.
AdvanSix has an expected earnings growth rate of 7.4% for the current year. The Zacks Consensus Estimate for current-year earnings has moved 5.3% north in the past 60 days.
AdvanSix’s bottom line beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 47%. ASIX has soared 83% over a year.