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Manitowoc's (MTW) Earnings & Revenues Miss Estimates in Q2
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The Manitowoc Company, Inc. (MTW - Free Report) reported adjusted earnings per share (EPS) of 21 cents in second-quarter 2022, missing the Zacks Consensus Estimate of 36 cents per share. The bottom line declined 65% year over year.
Including one-time items, the company reported EPS of 42 cents in the quarter compared with the prior-year quarter’s 50 cents per share.
Manitowoc’s revenues were up 7.2% year over year to $497 million in the quarter under review. The top line missed the Zacks Consensus Estimate of $552 million. Unfavorable changes in foreign currency translation rates had an impact of $27.9 million on sales.
Orders in the reported quarter declined 19.2% year over year to $434 million. Backlog at the end of the quarter was $948 million, down 8.3% from the last quarter.
The Manitowoc Company, Inc. Price, Consensus and EPS Surprise
Cost of sales moved up 9.5% year over year to $408.5 million in the reported quarter. Gross profit was down 2% year over year to $89 million. The gross margin was 17.8% in the reported quarter compared with 19.5% in the prior-year quarter.
Engineering, selling and administrative expenses increased 9% year over year to $69 million. Adjusted operating income was $20 million in the quarter, down 35% from $31 million in the prior-year quarter. Adjusted EBITDA in the reported quarter was $36 million compared with $41 million in the prior-year quarter. Adjusted EBITDA margin contracted to 7.3% from the year-ago quarter’s 8.8%
Financial Update
Manitowoc reported cash and cash equivalents of $43 million at the end of the second quarter of 2022, down from $75 million at the 2021-end. Long-term debt was $379.9 million at the end of the quarter under review, down from $399.9 million at the 2021-end. The company generated $0.1 million of cash in operating activities in the second quarter of 2022 compared with $8.9 million in the last-year quarter.
Outlook
Manitowoc expects 2022 results to be at the lower end of its adjusted EBITDA guidance. It anticipates inflation, rising interest rates, and geopolitical tensions will continue to hurt margins in the second half of the year. MTW had earlier provided revenue guidance in the range of $2.0 billion to $2.2 billion, adjusted EBITDA at $130-$160 million and adjusted EPS between 65 cents and $1.35.
Price Performance
In the past year, Manitowoc’s shares have fallen 53.6% compared with the industry’s decline of 13.3%.
Image Source: Zacks Investment Research
Zacks Rank and Stocks to Consider
Manitowoc currently carries a Zacks Rank #5 (Strong Sell).
Greif has an estimated earnings growth rate of 37% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 17%.
Greif pulled off a trailing four-quarter earnings surprise of 22.9%, on average. GEF’s shares have risen 17% in the past year.
Titan International has an estimated earnings growth rate of 165% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 43%.
Titan International pulled off a trailing four-quarter earnings surprise of 56.4%, on average. TWI’s shares have soared 101% in a year.
MRC Global has an expected earnings growth rate of 259% for 2022. The Zacks Consensus Estimate for the current year’s earnings moved up 24% in the past 60 days.
MRC Global has a trailing four-quarter earnings surprise of 140.8%, on average. MRC’s shares have surged 35% in the past year.
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Manitowoc's (MTW) Earnings & Revenues Miss Estimates in Q2
The Manitowoc Company, Inc. (MTW - Free Report) reported adjusted earnings per share (EPS) of 21 cents in second-quarter 2022, missing the Zacks Consensus Estimate of 36 cents per share. The bottom line declined 65% year over year.
Including one-time items, the company reported EPS of 42 cents in the quarter compared with the prior-year quarter’s 50 cents per share.
Manitowoc’s revenues were up 7.2% year over year to $497 million in the quarter under review. The top line missed the Zacks Consensus Estimate of $552 million. Unfavorable changes in foreign currency translation rates had an impact of $27.9 million on sales.
Orders in the reported quarter declined 19.2% year over year to $434 million. Backlog at the end of the quarter was $948 million, down 8.3% from the last quarter.
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 moved up 9.5% year over year to $408.5 million in the reported quarter. Gross profit was down 2% year over year to $89 million. The gross margin was 17.8% in the reported quarter compared with 19.5% in the prior-year quarter.
Engineering, selling and administrative expenses increased 9% year over year to $69 million. Adjusted operating income was $20 million in the quarter, down 35% from $31 million in the prior-year quarter. Adjusted EBITDA in the reported quarter was $36 million compared with $41 million in the prior-year quarter. Adjusted EBITDA margin contracted to 7.3% from the year-ago quarter’s 8.8%
Financial Update
Manitowoc reported cash and cash equivalents of $43 million at the end of the second quarter of 2022, down from $75 million at the 2021-end. Long-term debt was $379.9 million at the end of the quarter under review, down from $399.9 million at the 2021-end. The company generated $0.1 million of cash in operating activities in the second quarter of 2022 compared with $8.9 million in the last-year quarter.
Outlook
Manitowoc expects 2022 results to be at the lower end of its adjusted EBITDA guidance. It anticipates inflation, rising interest rates, and geopolitical tensions will continue to hurt margins in the second half of the year. MTW had earlier provided revenue guidance in the range of $2.0 billion to $2.2 billion, adjusted EBITDA at $130-$160 million and adjusted EPS between 65 cents and $1.35.
Price Performance
In the past year, Manitowoc’s shares have fallen 53.6% compared with the industry’s decline of 13.3%.
Image Source: Zacks Investment Research
Zacks Rank and Stocks to Consider
Manitowoc currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks from the Industrial Products sector are Greif Inc. (GEF - Free Report) , Titan International and MRC Global (MRC - Free Report) . All of these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Greif has an estimated earnings growth rate of 37% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 17%.
Greif pulled off a trailing four-quarter earnings surprise of 22.9%, on average. GEF’s shares have risen 17% in the past year.
Titan International has an estimated earnings growth rate of 165% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 43%.
Titan International pulled off a trailing four-quarter earnings surprise of 56.4%, on average. TWI’s shares have soared 101% in a year.
MRC Global has an expected earnings growth rate of 259% for 2022. The Zacks Consensus Estimate for the current year’s earnings moved up 24% in the past 60 days.
MRC Global has a trailing four-quarter earnings surprise of 140.8%, on average. MRC’s shares have surged 35% in the past year.