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Manitowoc (MTW) Q1 Earnings Miss Estimates, Revenues Beat

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The Manitowoc Company, Inc. (MTW - Free Report) reported adjusted earnings per share (EPS) of 3 cents in first-quarter 2022, missing the Zacks Consensus Estimate of 6 cents per share. The bottom line, however, marked a solid improvement from a loss of 6 cents per share in the year-ago quarter.

Including one-time items, the company reported earnings per share of 9 cents in the quarter against the prior-year quarter’s loss of 9 cents per share.

Manitowoc’s revenues rose 29.6% year over year to $459 million in the quarter under review. The top line beat the Zacks Consensus Estimate of $432 million. Unfavorable changes in foreign currency translation rates had an impact of $15.8 million on sales.

Orders in the reported quarter increased 1.7% year over year to $481.5 million. Backlog at the end of the quarter was $1,033.4 million, up 56% from the last-year quarter.

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

Operational Update

Cost of sales surged 31% year over year to $374 million in the reported quarter. Gross profit moved up 24.3% year over year to $85 million. Gross margin was 18.5% in the reported quarter compared with 19.3% in the prior-year quarter.

Engineering, selling and administrative expenses increased 15% year over year to $66 million. Adjusted operating income was $14 million in the quarter, down 30% from $11 million in the prior-year quarter. Adjusted EBITDA in the reported quarter was $31.2 million compared with $21.1 million in the prior-year quarter. Adjusted EBITDA margin contracted to 6.8% from the year-ago quarter’s 6%.

Financial Updates

Manitowoc reported cash and cash equivalents of $51.6 million at the end of the first quarter of 2022, down from $75.4 million at the 2021-end. Long-term debt was $380.1 million at the end of the quarter under review, down from $399.9 million at the 2021-end. The company generated $5.6 million of cash in operating activities in the first quarter of 2022 compared with $40.8 million in the last-year quarter.

Outlook

Manitowoc now expects results in 2022 to be at the lower end of its guidance. It anticipates downward pressure on margins in the second half compared to its prior expectations. MTW had earlier provided revenue guidance in the range of $2.0 billion to $2.2 billion. Adjusted EBITDA is anticipated between $130 million and $160 million. Adjusted EPS is expected between 65 cents and $1.35.

Price Performance

Zacks Investment Research
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In the past year, Manitowoc’s shares have fallen 47.9% compared with the industry’s decline of 10.7%.

Zacks Rank and Stocks to Consider

Manitowoc currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Industrial Products sector are Alcoa (AA - Free Report) , Packaging Corporation of America (PKG - Free Report) and Graphic Packaging Holding Company (GPK - Free Report) . All of these stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Alcoa has a projected earnings growth rate of 107% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 76% in the past 60 days.

Alcoa delivered a trailing four-quarter earnings surprise of 17.4%, on average. Alcoa’s shares have surged 69.3% in the past year.

Packaging Corporation has an expected earnings growth rate of 16.2% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 4.2% in the past 60 days.

PKG has a trailing four-quarter earnings surprise of 19.6%, on average. Packaging Corporation’s shares have gained 5.4% in the past year.

Graphic Packaging has an estimated earnings growth rate of 86.8% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 7.6%.

Graphic Packaging pulled off a trailing four-quarter earnings surprise of 7.2%, on average. The company’s shares have appreciated 14.8% in a year’s time.

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